Tag Archives: income tax

Income tax on the horizon, warns Fortunato

During the 2017 legislative session, Sen. Phil Fortunato, R-Auburn, sponsored a state constitutional amendment to prohibit the imposition of an unpopular income tax on citizens in Washington state. Although the measure had bipartisan support, Senate Joint Resolution 8204 needed a two-thirds majority to pass. Most Senate Democrats voted against the measure while all 25 members of the then-Majority Coalition Caucus supported it.

“When I introduced this proposal, people scoffed,” said Fortunato. “During debate, the opposition said we were wasting valuable time on something no one was talking about. I guess he wasn’t paying attention because the counterparts in the House introduced income tax bills, the City of Seattle was trying to implement an income tax, and now they’ve reintroduced another proposal to create a state income tax on capital gains again.”

Using verbal camouflage, they are trying to redefine income tax, arguing that a tax on capital gains is an excise tax. However, state revenue departments across the country disagree. Even progressive California, “taxes capital gains as an income tax and taxed at the same rate and ordinary income.”

“The fact is that some in Olympia just want more of your money, regardless of where it comes from,” said Fortunato. “Pro-tax legislators constantly want to raise taxes to do something nice for the people. I say give them their own money back and let them do something nice for themselves. The people of Washington have been clear, even in progressive parts of the state; they don’t want an income tax.”

New capital gains disaster in Connecticut a warning for Washington, Fortunato says

Gov. Jay Inslee and his fellow Democrats are pressing the Washington Legislature to adopt a new income tax on capital gains, but before they go any further, they might want to check with their colleagues in the Connecticut General Assembly, says Sen. Phil Fortunato, R-Auburn.

A brand-new $1.8 billion budget disaster in that state is the direct result of a capital gains income tax – almost exactly like the tax Democrats are proposing here.

“We couldn’t have asked for a better-timed warning,” Fortunato observed. “Those who think an income tax on capital gains is a good idea are ignoring its volatility. Or else they understand the danger full well — and they are counting on it.

“By backing the state into a corner they might be able to force Washington to adopt a broader income tax that would hit every taxpayer in the state.”

Connecticut officials revealed April 28 that plummeting revenues from that state’s tax on capital gains income have left an enormous hole in their budget. Connecticut’s taxes are weighted toward the rich. But in 2016, the rich didn’t sell as many stocks as the state expected – so projected capital gains tax collections fell 8.9 percent. Connecticut now must raise hundreds of millions of dollars in a hurry, and flummoxed legislative leaders say they may have no choice but to raise income-tax rates for everyone.

“Democrats in Connecticut are already talking about jacking up taxes on the middle class,” Fortunato said. “Least shocking news ever.”
The budget disaster in the Nutmeg State has direct implications for Washington. This is one of just seven states that does not impose an income tax. Washington voters have repeatedly rejected an income tax, nine times since 1934, frustrating advocates of higher taxes and spending. Now Gov. Jay Inslee and his fellow Democrats are taking a different tack, proposing a narrow type of income tax, on capital gains income, and claiming that it would only affect the rich.

“That’s what they said in Connecticut, too,” Fortunato warned. “The income tax was supposed to bring stability to state government and make the rich pay more. But this crisis in Connecticut shows how foolish it is to balance your budget on a relative handful of people.
“Eventually, a downturn will turn the money spigot off. When that happens, politicians will head straight for the pockets of the little guy. That’s why I proposed a constitutional amendment to ban income taxes in this state.”

For more information:
WTNH-TV (New Haven, Conn.), April 28, 2017: Income tax revenue collapses; Malloy says taxing the rich doesn’t work
New Haven Register, May 1, 2017: Drop in income tax receipts plunge Connecticut’s budget further into deficit
Connecticut Mirror, May 2, 2017: House speaker: Deficit too great to rule out income tax hike

VIDEO: No one is talking about an INCOME TAX–except that they are!

In this new legislative video, Senator Phil Fortunato describes his effort to ban income taxes in Washington and who opposed it. He also describes how opponents of his ban on the income tax claimed “no one was talking about an income tax” even though plenty of them were talking about AND supporting an income tax.