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.
President Donald Trump's administration has given New York until March 21 to comply with its order to halt Manhattan’s new congestion pricing system.
The Social Security Administration’s acting commissioner has stepped down from her role at the agency over Department of Government Efficiency requests.
Mexican President Claudia Sheinbaum says her government is not ruling out filing a civil lawsuit against Google if it maintains its stance of calling the stretch of sea between northeastern Mexico and the southeastern United States the “Gulf of America.” Sheinbaum, in her morning press conference on Thursday, said the president’s decree to change the name of the Gulf of Mexico is restricted to the “continental shelf of the United States” because Mexico still controls much of the body of water. “We have sovereignty over our continental shelf,” she said.
The White House says news organizations that refuse to use President Donald Trump’s new name for the Gulf of Mexico are telling “lies."
U.S. tariffs on steel and aluminum “will not go unanswered,” European Union chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger toug
President Donald Trump is hitting foreign steel and aluminum with a 25% tax. If that sounds familiar, it’s because he did pretty much the same thing during
A study of news influencers reveals how Donald Trump had an edge over Kamala Harris in the presidential campaign.
A group of investors led by Elon Musk says it is offering $97.4 billion to buy the nonprofit behind OpenAI.
President Donald Trump has ordered the U.S. to stop minting pennies. His surprise announcement comes after decades of unsuccessful efforts to phase out the 1-cent coin. Advocates for ditching the penny cite its high production cost and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel. Here's a look at some question surrounding Trump's order.
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
