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Seattle… tax haven?

by Goldy — Thursday, 9/2/04, 12:43 pm

Thanks to HorsesAss.org reader Jon for pointing me towards CNNMoney’s “City-by-city Tax Burdens.” Based on a recently issued annual survey conducted by the District of Columbia, the article ranks the largest city in each state by average state and local tax burden (average taxes as a percentage of average income.)

Scroll down the list — way down — and you’ll find Seattle bringing up the rear in 41st place, with an average 6.5% tax burden.

Tim Eyman is fond of saying that “Seattle’s never met a tax they didn’t like,” but apparently we haven’t met too many taxes. As Jon suggests, this is one tax statistic you won’t hear Timmy talking about.

Of course these numbers are just averages, and tax burden on Seattle’s poorest households are as much as three times higher. But it’s a useful measuring stick to see where we compare to others.

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Comments

  1. 1

    thehim spews:

    Thursday, 9/2/04 at 8:57 pm

    Well, I\’ll be damned, we have the third least progressive tax structure in the nation. With all the whining I hear around here from people that can actually afford their taxes, I\’d have expected at least top-half.

  2. 2

    Bobby spews:

    Friday, 9/3/04 at 1:14 pm

    Thats because that doesn\’t count federal taxation in the state. State and Local taxes are relatively low, but when added on to certain federal taxation. Dont forget, the state taxing atmosphere is different for businesses than for people.

  3. 3

    Goldy spews:

    Saturday, 9/4/04 at 9:38 am

    Bobby… and your point is?

    We\’re talking about comparing state and local tax burden. Your federal tax rates remain the same regardless of where you live. The primary reason why Washington ranks so high (7th) in per capita federal taxes is because we have so many wealthy individuals and large corporations in our state.

    But if you want to roll federal taxes into the equation, chew on this. According to an independent study, Ron Sims\’ tax plan would save Washinton taxpayers $1.5 billion in federal taxes, by allowing us to deduct state income taxes on our federal return.

  4. 4

    Forrest spews:

    Thursday, 9/9/04 at 10:08 pm

    I\’ve done business in the state of Georgia and here in WA… and I can tell you from personal experience it\’s much easier and financially beneficial to own and operate a business in a state with an income tax. An income tax provides an incentive for a small business to invest in itself and write off the investment (or \”tax subsidy,\” if you will), making owning a business much less punitive (% gross) and more progressive (graduated % of net) from both a personal and business standpoint.

    When I put that into the context of our tax burden in relationship to other cities, and the billions in savings on our federal returns (thanks for that info, Goldy)… WA doens\’t seem so bad… unless you\’re paying 9% of your gross. An income tax would, contrary to nay-sayers dire predictions, boost the growth of WA businesses while creating new businesses.

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