Washington can be a wonderful place to raise a family. But our state also has one of the most upside-down tax codes in the country, with working and middle-class families paying a far higher tax rate than the wealthiest, a problem made worse by I-645 — officially known as the Repeal Tax on Household Income Over $1 Million and Prohibit State and Local Taxes on Income Initiative — on the Nov. 3 ballot. This is why I’m joining nurses, teachers and small business owners to oppose I-645 and urge you to vote “no” on this fiscally irresponsible measure.
By repealing the so-called millionaires tax and giving the wealthiest 1% a tax cut, I-645 would blow a $13 billion hole in our state budget. This would result in serious cuts to K-12 education, healthcare, childcare and other important programs that families rely on.
Moreover, I-645 would make it all but impossible to retain all of the tax cuts that came with the income tax bill: a tax cut for 460,000 working families struggling with the cost of living, eliminating or reducing the B&O tax on 138,000 small businesses (the largest small business tax cut in state history), as well as sales tax cuts on household items — all of which are paid for by this modest tax on the very wealthy.
I was born on Capitol Hill and grew up in Lake Forest Park, and these days I’m raising my kids in South Seattle. I currently lead the Children’s Alliance, a statewide, nonpartisan organization that advocates for children and families.
We know that when working and middle-class families carry a disproportionate share of the tax burden, it becomes nearly impossible to build stability, save for the future and get ahead. Our current tax code hits families like this the hardest, those already struggling to afford basics like housing, childcare, groceries, transportation and healthcare. Their tax rate is more than three times higher than those with the greatest wealth.
Rejecting I-645 is so important because the initiative undermines a needed effort to rebalance the tax code, where those who have benefited most from Washington’s economy are asked to contribute a little bit more. They’d fund core services and tax cuts for working and middle-class families and small businesses. And no matter what you’ve heard, it’s simple: Fewer than 1% of households would pay the tax on income over $1 million annually (that’s more than $83,000 per month). Property sales or the sale of small, family-owned businesses aren’t counted, and capital gains are not double-taxed.
Hedge fund mogul Brian Heywood and his wealthy friends oppose this, and they put I-645 on the ballot to cut their own taxes, at the expense of everyone else.
I started my career as a preschool teacher, where I took pride in helping young children. I loved my job, but my salary was low, and I struggled to make ends meet. The situation is the same today for many early educators and other workers in essential roles who keep our communities strong and our economy running. They need the tax cuts that this income tax funds to pay for community college, gas to and from work, health insurance and other basic necessities.
By rebalancing our tax code, we are creating a better outcome for the early educators of today. But if I-645 passes, it will jeopardize these tax breaks and take away something that would make a real difference in many essential workers’ day-to-day lives.
And with the $13 billion hit to the state budget over four years, the cuts to core services are going to be felt by all of us. For kids attending public schools, like my 9-year-old son, that means more crowded classrooms and fewer one-on-one supports. It would be a step backward and cause harm to those at the greatest risk.
We all want to live in a state where every family can thrive. When filling out your ballot, I ask you to join me in prioritizing what brings us closer to that vision. A statewide coalition of teachers, small business owners, local elected officials, and organizations like Planned Parenthood advocates and the Sierra Club all agree: Vote “no” on I-645.
Editor’s note: Below, watch The Seattle Times editorial board interview with representatives of groups for and against I-645, which would repeal the so-called “millionaires tax.”
