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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No denying it: At least $10 billion has been cut from the state budget
- State budget cuts have taken an enormous toll on Washington state’s core public health, education, and community safety structures. Basic public services have been cut by at least $10 billion since the start of the Great Recession. These budget cuts have taken a grizzly toll on the health and well-being of workers and families from Aberdeen to Spokane.
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A Capital Reform: Using Capital Gains to Fuel Job Creation and Economic Prosperity in Washington state
- To create jobs, spur long-term economic growth, and foster prosperity, Washington state desperately needs to rebuild our eroding education, public health, and community safety infrastructure. The state has a powerful, but untapped resource to accomplish this: capital gains. A modest tax on some capital gains would help fuel economic recovery and opportunity for future generations of Washingtonians...
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A Framework for Prosperity
- Washington’s path to economic recovery and future prosperity is dependent upon the choices we make in the coming weeks. Our state budget is an essential tool for investing in smart choices that will uphold our values and put us on the right path. In the midst of the worst economy since the Great Depression, our state’s primary responsibility should be to make investments that will ignite the economy, put people back to work, and provide opportunities for future generations to prosper.
Also in this section
- Updated data: Capital Gains Still More Concentrated Among Wealthiest Few
- Capital Gains Tax + Rainy Day Fund = Greater Economic Stability
- Capital gains becoming even more concentrated among richest few
- No denying it: At least $10 billion has been cut from the state budget
- State budget cuts have taken an enormous toll on Washington state’s core public health, education, and community safety structures. Basic public services have been cut by at least $10 billion since the start of the Great Recession. These budget cuts have taken a grizzly toll on the health and well-being of workers and families from Aberdeen to Spokane.
- New national report identifies corporate tax avoiders
- Five advantages of raising the sales tax
- Capital gains: A rapidly growing, untapped resource
- New policy brief proposes capital gains tax in Washington state
- A Capital Reform: Using Capital Gains to Fuel Job Creation and Economic Prosperity in Washington state
- To create jobs, spur long-term economic growth, and foster prosperity, Washington state desperately needs to rebuild our eroding education, public health, and community safety infrastructure. The state has a powerful, but untapped resource to accomplish this: capital gains. A modest tax on some capital gains would help fuel economic recovery and opportunity for future generations of Washingtonians...
- SJR 8206 fails to address biggest problems in the state's rainy day fund
- A Framework for Prosperity
- Washington’s path to economic recovery and future prosperity is dependent upon the choices we make in the coming weeks. Our state budget is an essential tool for investing in smart choices that will uphold our values and put us on the right path. In the midst of the worst economy since the Great Depression, our state’s primary responsibility should be to make investments that will ignite the economy, put people back to work, and provide opportunities for future generations to prosper.
- Not your older brother's recession
- The only thing trickling down is the pain
- New tax break audit report: A valuable but limited tool
- The sun sets on two tax breaks (500 more escape scrutiny)
- June revenue forecast demystified
- Revenue forecast shows new approach needed to bolster state economy
- Governor signs budget that won’t create jobs, threatens economic recovery
- Majority rules? Not this time.
- New Policy Brief: State debt limit debate misses the point
