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
Also in this section
- Harmful Supermajority Requirement Headed Back to Ballot
- New Projections Highlight Long-Term Revenue Crisis
- With Big Shortfalls Ahead, Gubernatorial Candidates Should Focus on Broken Revenue System
- One Way to Improve Children’s Health: Fund the Working Families Tax Rebate
- Regardless of Ruling,‘Supermajority’ Requirement Hurts Washington’s Economy
- The Sun Hasn’t Set on Efforts to End Wasteful Tax Breaks
- Dysfunctional Tax System Fails to Meet Modern Needs
- New National Report Highlights Weaknesses of Washington’s Tax Break Evaluations
- Tax Increases? Where?
- Supplemental Budget: Worst of Cuts Avoided, Challenges Remain
- Four-Year Budgeting: Unreliable Long-Term Forecasts Could Harm Public Priorities
- New Revenue Bill: A Step in the Right Direction, Far from Balanced Approach
- Out-Dated, Flawed Revenue System Creating Long-Term Fiscal Challenges
- Session Ends; 800 Pound Revenue Gorilla Still in Room
- Want to Reform State Government? Don't Forget the Tax Breaks.
- Top 10 Graphs About Capital Gains
- Elite Investment Clubs Account for Largest Share of Capital Gains
- Revenue Forecast Up Slightly; Problem Not Solved
- No Matter What the Revenue Forecast Holds, State Faces Staggering Shortfall
- Video: Economist Jared Bernstein Explains Capital Gains Taxes
