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Lawmakers Looking At State Income Tax

Lawmakers are looking at creating a state income tax aimed at millionaires to help close the budget gap.

It's widely believed that our state's constitution prohibits an income tax, but the law's a bit murky and it's likely that income tax would be constitutional, as long as it's capped at one percent.

Renton is like most towns in Washington State. Mention income tax and the responses tend to be skeptical.

"I don't want to see anything else raised around here, I mean we're already paying enough taxes," said Cathy Darrington.

"Maybe they should quit spending so much money and driving around such big cars and doing things like that," said Daniel Higgins.

But with the $9 billion budget gap, some are supportive.

"Any more money we all can get it would definitely be great," said Andre Marshall.

Mention that the income tax might be limited to individuals making $500,000 a year and there's sympathy for millionaires.

"I'm certainly in favor of a progressive tax, but to totally target them it seems a bit much," said Jeff Stockton.

The latest numbers show a 1 percent income tax on everyone could raise upwards of $2 billion over the next two years, but when you limit the tax to millionaires, it only generates about $100 million.

"It's a very small amount relative to the state and the budget gap that the state is facing today," said Kriss Sjoblom.

Sjoblom worked on the state commission that dug into the income tax idea five years ago and said a narrowly target income tax might have a chance with voters.

"The millionaire's tax is a different issue than a tax that applies to everybody," said Sjoblom.

Seattle Senator Jeanne Kohl-Wells has been pushing the millionaire income tax idea for about a year. Senate majority leader Lisa Brown is working on a similar idea. Any proposal would go to a vote of the people. Governor Gregoire released a statement Thursday saying that she’s opposed to a state income tax.

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