Washington state lawmakers are considering levying a 1 percent tax on "extraordinary intangible financial assets" of people whose personal wealth exceeds $1 billion. This includes assets such as cash, futures contracts, and publicly traded options — not income.
Washington Democrats have rallied around the measure as one way to help combat growing economic inequality in the state, which has only intensified during the pandemic.
"The conditions were there before the pandemic, but the pandemic has laid bare the true inequity in our tax code here in Washington state," State Rep. Noel Frame told Cheddar.
The representative said that Washington had the distinction of having the most regressive tax code in the country, with lower-income households paying disproportionately more than higher-income households. The state does not impose a personal income tax.
"I think it's egregious and out of step with our values as a state," she said.
Using confidential data from the IRS, U.S. Federal Reserve, and proprietary information from Forbes, the state estimated that the law would impact 100 taxpayers in Washington.
Among them are world-famous mega billionaires such as Jeff Bezos, Bill Gates, MacKenzie Scott, and Steve Ballmer, who would contribute the lion's share of the tax contributions.
Based on the latest data from Forbes, the Tax Foundation found that about 97 percent would come from those four individuals, though roughly a dozen people would be liable for the tax.
"I have to tell you that number is jaw-dropping to me," Frame said. "I think we know a few of those billionaires in our state, but it turns out there are many, many more."
If passed, the levy would be imposed starting January 1, 2022, for taxes due the following year.
Frame said another goal of the bill is to help fund existing tax credits for lower-income households, including a credit against the sales tax, which she said the state is overly reliant on. She added that about 47 percent of Washington's revenue in 2020 came from the sales tax, which is generally considered more regressive than other taxes.
"When you think about somebody who has a total household income of $24,000 or less, you can imagine how quickly the sales tax on those everyday purchases will add up as a share of your household income," she said.
State lawmakers are set to let the bill "simmer" over the next few weeks, Frame said.
Covid cases have started to spike again across the nation, and this time they seem to be hitting some of our youngest and most vulnerable - school-aged children. School districts across the nation - including the country's largest public school system in New York City- are all grappling with what to do as teachers and students alike continue to miss school in droves.
Katie Honan, reporter for the New York City-based non profit news organization, The City explains how educational leaders across the country are handling covid demands from both teachers and parents alike.
Last week, the Supreme Court began here to hear arguments on two of the President's COVID-19 vaccine mandates. The vaccine or testing requirement for employees of large businesses, as well as the vaccine mandate for health care providers who get funding through either Medicare or Medicaid. The justices in DC will ultimately decide whether or not federal agencies even have the authority to issue these types of mandates. Editor at large of employment at Law 360, Vin Gurrieri, joined Cheddar to discuss more.
On this episode of Cheddar Reveals Richenda Sandlin-Tymitz, Marketing & Content Manager at Alaska Tour & Travel, breaks down when and how to plan your best trip to Alaska; Kristen Miller, Acting Executive Director, Alaska Wilderness League, discusses the Arctic National Wildlife Refuge and the oil drilling that threatens it; Cheddar gets a look at Curiosity Stream's 'The Magic of the Wild.'
Kristen Miller, acting executive director, Alaska Wilderness League, discusses the Arctic National Wildlife Refuge and the oil drilling that threatens it.
The Department of Treasury is warning Americans to expect delays on their tax returns this year as the IRS manages staffing shortages due to the pandemic.
The United States and Russia remain distant following a meeting between high-level officials for the two countries in Geneva, Switzerland. The nations remain conflicted over Washington's concern of a potential invasion of Ukraine by Russia and Moscow dispute with NATO expanding into former Soviet states. Hagar Chemali, host of Oh My World on YouTube and former spokesperson for the U.S. Mission to the U.N., joined Cheddar's "News Wrap" to give her take about the careful diplomatic negotiations underway. "I would expect more rounds," she said about the talks. "Both sides really remain adamant that we're not going to talk about Russia's proposal, and Russia doesn't want to talk about anything but its proposal. So once they start talking about the other items on the table, and there are a few other items, that's when negotiations can start."
Markets closed the day mixed, and well off their lows of the day following a market meltdown earlier in the session. The Nasdaq staged a comeback late in the day, even amid ongoing worries about the Federal Reserve raising interest rates. Doug Flynn, certified financial planner and co-founder of Flynn Zito Capito, joined Cheddar News' Closing Bell to discuss the markets' close and what's driving the major indexes.
