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Initiative 1929 is the wrong move for Washington state

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Initiative 1929 is the wrong move for Washington state

Initiative would reduce investments in kids and give a tax cut to the wealthy

By Leila Reynolds & Tracy Yeung - April 18, 2022

Initiative 1929 seeks to give the wealthiest 0.2% of Washingtonians an unnecessary tax cut and take away over $500 million per year in critical funding for child care and early learning. It undoes one of the most equitable fixes to our state tax code in 90 years – the excise tax on extraordinary capital gains profits.

Who is harmed by Initiative 1929? 

I-1929 would harm kids, families, teachers, child care workers, and our communities. Without the funding generated by the capital gains wealth tax, many families won’t have access to affordable preschool and child care. Further, early learning and child care educators who care for our future generations will not be adequately compensated. The initiative would also reduce funding for much-needed improvements to school buildings and construction projects in Washington state. Finally, I-1929 would preserve the unjust status quo in which the lowest-income Washingtonians pay the largest share of their income in state and local taxes – thus preserving a barrier to economic opportunity for people with low incomes and BIPOC communities.

Who benefits from Initiative 1929? 

The initiative would effectively pad the pockets of the uber-wealthy. I1929 will cut the tax bills for 0.2% of the very wealthiest Washingtonians – fewer than 8,200 households – who have enough profits from selling assets to be eligible to pay the capital gains wealth tax. These households have average annual incomes of more than $2 million. 

What’s next?  

The I-1929 campaign is an effort funded by a small group of ultrawealthy folks working to give themselves a tax cut, when we know that our tax code already disproportionately benefits the rich. They are trying to gather signatures from registered voters in order to get I-1929 on the November ballot.  

We must stop this from happening. The passage of the capital gains excise tax in 2021 was a historic legislative victory that moved our tax code in the right direction toward creating economic justice. Washington needs policies like this that help create a bright economic future for everyone. Initiative 1929 would instead take us backward. 

The choice is clear rejecting I-1929 means protecting and supporting Washington’s kids.  

Posted in:

Ballot Measures, Capital Gains Tax, Economic Well-Being