Leaked internal documents reveal Washington State Democrats' plans for significant tax increases, including an 11% tax on firearms and ammunition, reclassifying storage unit rentals as retail transactions, and lifting property tax levy lids. These proposals, accidentally emailed to the entire upper chamber, have sparked controversy and criticism, particularly from Republicans and some media commentators.
The leaked materials include a document titled "2025 Revenue Options" and a PowerPoint presentation advising lawmakers on how to discuss the tax hikes with constituents. The PowerPoint suggests using terms like "funding," "providing," and "ensuring" instead of "investing" and avoiding phrases like "tax the rich" or "pay their fair share." It also encourages lawmakers to "identify the villain" obstructing progress.
One of the most controversial proposals is a "capital assets ownership tax," similar to property taxes but applied to stocks, bonds, and other financial instruments. This tax aims to "ensure that extremely wealthy Washingtonians are taxed on their assets just like middle-class families."
Critics argue that these tax hikes contradict Democrats' campaign promises and come at a time of record state revenue. Concerns have been raised about the potential negative impact on economic growth and job creation, with some citing Amazon founder Jeff Bezos's move to Florida as an example of how high taxes can drive away wealthy individuals and businesses.
As Governor-elect Robert Ferguson prepares to take office, Republican State Rep. Travis Couture has criticized outgoing Governor Jay Inslee's 2025 budget proposal, calling it "not a serious proposal" and arguing that the state has a spending problem, not a revenue problem. The leaked tax plans have further intensified the debate over the state's fiscal future.
