From Seattletimes · · 1m 10s
WA Unions Fund Tax Fight
Public-sector unions spend millions to keep Washington's new millionaires tax.
In brief
Public-sector unions spend millions to keep Washington's new millionaires tax. Washington teachers and healthcare unions donated $3 million to block repeal of a high-earners income tax that would cost the state billions if passed. Originally reported by Seattletimes.
WA unions fund tax fight
Washington Education Association donated $2 million to the campaign against Initiative 645.
“The Washington Education Association plopped $2 million last week into the campaign against Initiative 645”
Unions lead tax defense
Public-sector unions have contributed seven-figure checks to the No on 645 campaign.
“Unions representing state employees and publicly funded healthcare workers have also contributed seven-figure checks”
Campaign funds
No on 645 campaign raised $7.8 million, Vote Yes raised $1.3 million.
“In all, the No on Initiative 645 campaign has raised $7.8 million, far outpacing the $1.3 million for the Vote Yes Repeal the Income Tax campaign”
Tax impact
New income tax imposes 9.9% levy on earnings above $1 million.
“The new income tax, dubbed the "millionaires tax" by supporters, imposes a 9.9% levy on annual household earnings above $1 million”
Tax revenue timeline
Tax collections start in 2029, but won't begin until 2029.
“It’s projected to bring in more than $3 billion a year, but collections won’t start until 2029”
State budget pressures
State faces financial pressures despite new taxes.
“Financial pressures are growing on the state budget despite billions in new taxes”
Union response
Teachers union says tax repeal would hurt schools.
“Tani Lindquist, vice president of the teachers union, said educators fear a repeal of the new tax would punch a multibillion-dollar hole in the state budget”
SEIU 775
SEIU 775 represents long-term care workers.
“SEIU 775, which represents long-term care workers, is also negotiating with the state over higher wages for its members”
Tax benefits
Tax funds state budget and childcare subsidies.
“Proceeds from the high-earners income tax, which will be paid by an estimated 25,000 households, will be mostly devoted to the general state operating budget”
Business opposition
Business owners fund tax repeal campaign.
“Business owners are bankrolling a so-far smaller campaign to persuade voters to vote "yes" to repeal the tax”
Business concerns
Businesses cite economic pressures to move elsewhere.
“Meg Gluth, who owns Catalynt, an Edmonds-based chemical and manufacturing company, said the business and tax climate is leading her to pull back on investments in Washington”
Tax repeal impact
Tax repeal would give millionaires tax breaks.
“The ad laments the state’s "upside-down tax code" and argues I-645 would give millionaires and billionaires a tax break while the rest of us pay more”
The short version
Washington teachers and healthcare unions donated $3 million to block repeal of a high-earners income tax that would cost the state billions if passed.
