State Revenue
After the worst recession of our lifetime, rebuilding Washington state’s economy must be policymakers first priority. To build a strong state, we need reforms that will create a more robust and stable revenue system that is able to meet the demands of the 21st century economy.
Washington state’s revenue system is:
- Behind the times. Our state revenue system hasn’t substantially changed since 1935. Seventy-seven years ago Washington state’s economy was based on agriculture, manufacturing, and purchases of tangible goods. Today our state produces advanced software and other high-tech goods and services that weren’t even imagined in the 1930s.
- Losing pace. Just 40 years ago, our revenue system generated 6.9 cents of every dollar of personal income produced in the state. Today it generates only 4.9 cents per dollar of personal income. That’s a 30 percent decline that won’t abate without changes.
- Upside-down. State taxes take a much larger bite out of family incomes among lower- and middle-income households compared to the richest households. As a share of their incomes, ordinary Washingtonians can pay up to eight times more in state and local taxes than those at the top of the income scale.
Instead of de-funding our values with deep budget cuts, Washington state lawmakers should focus on making changes to our revenue system that will rebuild the economy to work for everyone.
Related Research
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Policy Agenda: Framework for Prosperity
- We lay out specific recommendations for targeted investments that bring our state closer to providing prosperity for all Washingtonians. We also provide revenue options to help pay for those investments.
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IN PURSUIT OF PROSPERITY: Eight Strategies to Rebuild Washington State's Economy
- By Lori Pfingst, PhD As our newly elected leaders reconvene for next legislative session and beyond, it is important they recognize that widely shared prosperity doesn’t happen by accident. History, supported by persuasive research, proves that prosperity happens when we deliberately invest in the foundations of a strong economy – broad and equal opportunity to build knowledge and skills, adequate compensation and support for workers, and adequate investments in conditions that foster economic growth.
Also in this section
- Looming Special Session Provides Choices: Responsible Investments in Education and Jobs OR Gimmicks, Cuts, and Decline
- Jobs and Education Should Prevail Over Tax Breaks
- An Easy Choice: Invest in Education and Economic Growth For All, Or Continue Preferential Tax Rates For The Few?
- House Proposes Revenue to Rebuild Economy, Grow Middle Class
- Revenue Trends in Washington State
- Senate Budget Chooses New Tax Breaks Over Students, Seniors, and Families
- Movement Towards Tax Break Accountability
- Supermajority Law Struck Down, Time to Move Forward
- Bill Would Help Working Families Across the State
- More Ineffective Tax Breaks or Education, Health Care, and Prosperity? The choice is clear.
- Schools, Colleges Would Get a Much-Needed Boost From Plan to Tax High-End Capital Gains
- The Choice is Clear: Washington State Families or an Out-of-State Tax Break?
- Proposed ‘Supermajority’ Amendments Would Protect Latest Tax Loophole for the Wealthy
- We're Number 1! (But Not in A Good Way)
- Policy Agenda: Framework for Prosperity
- We lay out specific recommendations for targeted investments that bring our state closer to providing prosperity for all Washingtonians. We also provide revenue options to help pay for those investments.
- IN PURSUIT OF PROSPERITY: Eight Strategies to Rebuild Washington State's Economy
- By Lori Pfingst, PhD As our newly elected leaders reconvene for next legislative session and beyond, it is important they recognize that widely shared prosperity doesn’t happen by accident. History, supported by persuasive research, proves that prosperity happens when we deliberately invest in the foundations of a strong economy – broad and equal opportunity to build knowledge and skills, adequate compensation and support for workers, and adequate investments in conditions that foster economic growth.
- No Matter How You Slice It, Shortfalls Ahead
- Despite Better Revenue Forecast, New Resources Still Needed to Bolster Economic Growth
- Supermajority Law Debate: History Favors A Balanced Approach
- Inslee Tax Break Proposals Won’t Solve Long-Term Revenue Problem


