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Responsible Government

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Democracy works best when all of the people have a voice, and when those who make laws are accountable to the needs of the people. This is the ideal to which America strives, and strives very well, for no country in the world can boast citizen participation in government like the United States of America. Nonetheless, the government must always be held accountable so that it is responsive to the needs of all, rather than the few and the wealthy.

In particular, Washington has recently struggled with budget deficits in light of the slumping economy, which has challenged our ability to care for the needs of the people. One of the reasons Washington has been struck so hard by economic regression is our poorly devised tax system, which has affected our ability to meet the needs of crucial public systems.

A responsible government is accountable, collects taxes fairly, and ensures the well being of its people. But today in Washington, our tax system is not accountable, is not fair and does not provide enough revenue to address the needs of residents, as well state law also fails to protect Washington consumer from predatory lending practices.

Tax Fairness:

Washington has the most regressive tax structure in the nation, meaning that people with lower incomes pay more than their fair share, while the wealthy pay less than theirs. According to the Institute for Taxation and Economic Policy (ITEP), people earning under $17,000 are paying more than 17% of their income, while those earning over $922,000 pay as little as 3%. A big part of the problem is Washington’s over reliance on the sales tax which makes up more than half (54%) of all state revenues. This, coupled with a complete absence of an income tax, means that despite the immense disparity between how much money the very wealthy and how much money those of low-incomes earn, the difference in what they pay towards the government is minimal. Thus, from a percentage standpoint, the wealthy pay significantly less than people with low-incomes. This needs to change.

Additionally, many wealthy corporations are getting out of paying their taxes to the state through legal tax breaks. In 2002 and 2003 the legislature passed 43 tax breaks that cost $214 million. In 2004 they passed several more tax breaks that cost $109 million that year, which will grow to $323 million in the 2005-07 budget cycle.

Poverty Action supports tax reform in Washington State than includes a graduated income tax. We believe our tax system must be more fair, sufficient and stable to meet the needs of our residents into the future. We work to educate our members and mobilize people to support policies that make our tax system more accountable, end tax breaks that do not serve the common good and that alleviate taxes on people with lower incomes.