Washington state Democrats accidentally exposed their massive tax hike plan to the world to much booing just before Christmas.
On December 20, Washington Senate Deputy Majority Leader Noel Frame (D-Seattle) presented a document to Democratic senators titled “2025 Revenue Options'' and how to convince voters of proposed tax increases. The accompanying PowerPoint presentation was emailed.
Unfortunately for Ms. Frame, she accidentally sent it to her Republican colleagues, and it soon became public knowledge.
shocking stuffer
Frame's email cheerfully urges his fellow senators to “spread the love of tax policy to others.” But it's “worse than having a lump of coal in your stocking,” joked conservative podcaster Brandi Kruse.
“I wanted to start the (tax) conversation sooner,” Frame told the Washington Standard. But she added: “It's not this fast.”
Frame, vice chair of the Senate Ways and Means Committee on Finance, said it's her job to look for new ways to raise revenue because the state faces serious budget deficits.
Sending the email to all senators was a “very simple mistake,” she explained.
That could also be very costly for Democrats. They control every branch of government in the Evergreen State, but they need to appease voters who think they are only trying to embarrass the wealthy.
Leaked documents prove otherwise. Frame's tax proposal was found to be “radical and directly contradicts promises made by Democrats during the campaign,” not to mention “unpopular and possibly unconstitutional,” Seattle radio said. host Jason Lantz wrote.
“These proposals come at a time when the state has had years of record revenues, and they show that Democrats in Olympia have a spending problem, not a revenue problem,” he said. I'm emphasizing that.”
tax proposal
Frame's 2025 Revenue Options document lists nine taxes that Democrats should consider raising or imposing.
First, Frame proposes creating a statewide version of Seattle's JumpStart tax. It would impose a 6.2 percent tax “on total compensation paid to employees who earn in excess of the Social Security threshold (currently $168,000).” In Washington, employers with annual payrolls of $8 million or more would be subject to the tax, but Frame has proposed an alternative that would tax all companies regardless of their payroll size.
In addition to other business taxes, Frame also takes into account some personal taxes. She wants a “1% estate tax on financial intangibles over $50 million,” which she calls a “wealth tax.” She wants to raise capital gains, property taxes, and real estate taxes. Define self-storage unit rentals as retail transactions and make them taxable. and an 11% tax on firearms and ammunition.
Pend Runtz:
The idea that the taxes Washington Democrats pretend to target so thoroughly on the wealthy have no impact on other taxpayers is absurd.
Capital gains and wealth taxes often stifle investment and economic growth, can lead to fewer job opportunities and stagnant wages, and disproportionately impact middle- and low-income earners. It can also lead to wealthy individuals hosting their funds out of state or relocating altogether. Billionaire Amazon founder Jeff Bezos saved an estimated $1 billion in taxes by moving to Florida, according to Forbes.
Businesses affected by tax increases will most likely pass on the increased burden through price increases or service cuts, indirectly increasing costs for consumers and workers.
diss the villain
Frame is clearly aware of the criticism that will be leveled at him. That's why she included a PowerPoint presentation giving tips to her fellow Democrats on how to bring the proposed tax to market.
Frame suggests telling voters that the tax code is “outdated” and “upside down” and needs major changes.
“We need to identify the villains and problems that are holding back our progress, and how we can act to solve them,” her presentation reads.
Of course, as a Democrat, Mr. Frame has the usual villains in mind, writing:
Despite recent reforms, we still ask low- and moderate-income Washingtonians to pay far more in taxes than some of the world's richest people and some of the largest corporations.
That's a total bunk bed, Lantz points out.
Washington's capital gains tax alone generated about $890 million in revenue from about 4,000 wealthy Washington residents, more than originally estimated at about $500 million. Washington's wealthy contribute significantly more in taxes than other wealthy individuals, but they receive disproportionately fewer benefits than those who contribute less.
Nevertheless, Frame argues that “we can fund things like world-class schools and affordable housing by making the wealthy few pay what they borrow.” This suggests that the wealthy are somehow circumventing the law.
Frame has a long list of do's and don'ts for communicating your proposal. Rather than “Tax the rich” or “Pay your fair share,” say “Pay what they are owed.” After all, “taxes are not punishments.” Instead of “investing in X,” try “funding, providing, and/or securing X.” “Please be specific about the 'villain.'” And above all, “don't focus on the holes in the budget.” If that happens, there may be a tendency to blame politicians rather than the wealthy.
party poopers
Democrats don't seem too upset about the leak. They don't even deny that Mr. Frame's tax plan is under consideration. They are simply “distancing” from the “content” of the PowerPoint, the Washington State Standard reported.
On the Republican side, state Rep. Travis Couture (R-Allyn) posted on X regarding Mr. Frame's stupidity:
Probably the worst email and idea in state history. Democrats need to pick up Econ 101, take a cue, and keep their hands in their pockets.
