I-1098 Would Cut Taxes, Fund Improvements in Health Care and Education

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I-1098 Would Cut Taxes, Fund Improvements in Health Care and Education

By - July 23, 2010

Initiative 1098 offers Washingtonians an opportunity to enact important long-term reforms to our state’s inadequate revenue structure.  The measure would reduce taxes for homeowners and small businesses while providing additional resources for education and health care through a new tax on high incomes.

The proposed tax on high incomes would generate some $1.7 billion per year in additional resources for Washington State.  The graph below shows how the new revenue would be spent.

Figure1

As the graph shows, about 45 percent ($766 million) of the revenue would be spent on improvements to Washington’s education system.  Another 21 percent ($357 million) would be used to lower property taxes for homeowners and businesses.  The remaining revenues would be spent on new funding for health care services ($328 million) and lowering B&O taxes for small businesses ($249 million).

For more information on I-1098 and other measures to appear on the ballot this November, read our latest policy brief, “2010 Initiatives Could Impact Public Services.

 

About Andy Nicholas, Associate Director of Fiscal Policy

Andy specializes in state budget and tax policy. Since joining the Budget & Policy Center in 2009, he has served on a Legislative Task Force on Tax Preference Reform and has conducted numerous analyses of Washington state’s tax code.

Read more about Andy