Washington has always represented innovation and leadership. We are ahead of the majority of states in health care reform implementation, we are one of the first states to pass gay marriage by a ballot initiative and our state is home to corporate giants like Starbucks, Amazon and Microsoft.
However when it comes to taxes, we fall flat. The recent report by the Institute on Taxation and Economic Policy finds that Washington’s tax system is the most regressive in the country and has the highest taxes on the poor. Our tax system has been the most regressive in the country for a while. I hope what is different this time around is the way our state responds and meets the challenge. By making the wealthy and large corporations pay their fair share, we can ensure a more equitable tax system that works for everyone in our state.
Ultimately it comes down to one argument: tax fairness. In Washington, the poorest 20 percent of residents (average annual income of $11,000) pay 16.9 percent of their income in state and local taxes, while the richest 1 percent (average income of $1.8 million) pay 2.8 percent. That means that those at the bottom of the income bracket are paying six times as much of their income in taxes than their wealthy counterparts.
I have lived in Tacoma for nearly 30 years and am active in organizing the HIV/AIDS community. In the past few years I have seen devastating cuts to programs that serve as a lifeline to my community and I can honestly say that I am scared of what the future holds. Due to budget cuts, programs that provide medication and other assistance to my community have been scaled back. As a result, many of my friends and the people I work with are struggling to afford medication that can mean the difference between life and death.
Yet each year, additional cuts are on the table. In order to fund the programs that keep our families healthy and our communities strong, we need to raise revenue and create a more just tax structure. It is alarming to me that legislators continue to prioritize providing tax breaks for things like private jets and cosmetic surgeries, but slash programs that provide life-sustaining medication to my friends and neighbors.
Think about this. My friend who works full time, but still cannot afford his HIV medication, is paying a larger share of his income in taxes than someone like Bill Gates or Jeff Bezos. Our communities have paid their fair share, yet they are the ones who suffer from budget cuts.
With our state’s constant budget deficit, we cannot afford to be giving away billions of dollars that could be used to fund health care, education and other important programs. Not to mention that the wealthy and large corporations do not need tax breaks.
We are seeing the same trend at the federal level. Instead of discussing how to make the wealthy 2 percent and large corporations pay their fair share (closing loopholes and ending tax breaks for the rich would raise enough revenue to reduce the deficit), the debate is centered on cuts to Medicaid, Medicare and Social Security. These are programs that hard-working families rely on. And cuts would have a devastating impact on seniors, kids, and families across the country.
We cannot cut our way to prosperity. To create a strong economy, we need to ensure that families have the security, stability and resources they need to thrive.
What makes more sense? Ending huge tax subsidies on oil companies making record profits, or making seniors pay more for Medicare? Taking away families’ health care or limiting tax deductions for the richest 2 percent?
It is time for legislators to put the needs of our communities first. It is time to make the wealthy and large corporations pay their fair share.
Jack Johnson is a Tacoma resident. He is a member of Washington Community Action Network and is an AIDS activist and educator.