WA state Dems’ tax plans leaked, includes taxes on guns, wealth, unrealized capital gains: report

Internal Democratic documents obtained by Brandi Kruse, host of the UnDivided podcast, sent by State Senator Noel Frame via email, were accidentally sent to all state senators, including Republicans.

The introductory email from Frame includes talking points describing how to paint the wealthy as “villains” and encourages Democratic caucus members to “spread that tax policy love around!”

Senate Democrats are proposing a tax on unrealized gains, a B&O [business and occupation] surcharge for large corporations, and a tax on high-paying jobs. The tax on jobs is modeled off the Jump Start tax in Seattle, which targeted Amazon and led to the tech giant moving over 10,000 jobs out of the Emerald City to nearby Bellevue.

One version of the jobs tax will apply to all businesses, not just those with a payroll over $8 million, a move that will likely lead to businesses moving out of state.

Democrats are also proposing an additional 11 percent tax on the sale of guns and ammunition, lifting the lid on property tax levies, and increasing the ceiling for the Real Estate Excise Tax.

The Democrats are proposing the taxes to close a $10-14 billion budget deficit rather than cutting spending.

The internal memo from Senate Democrats instructs members to vilify the rich and avoid discussing the deficit. Suggested Democratic talking points include, “Make the wealthy pay what they owe,” and “Be specific about the villain.”

Democrats also suggested avoiding focusing on “the budget hole,” and to not “say tax burden or tax relief.”

The revelations come on the heels of Governor Jay Inslee proposing similar taxes rather than spending cuts in his 4-year balanced budget proposal for 2025-2029.

In response to the governor's proposed budget, the Washington Policy Center (WPC) said in a statement, that Inslee’s budget “fails to appropriately consider the need to reduce the cost-of-living burden families are facing by refusing to cut the state sales tax rate which hasn’t seen a reduction since 1982. This is despite record state spending increases and recent spending of one-time revenue for ongoing expenses, guaranteeing the creation of a budget gap.”

“In the last 12 years, during Governor Inslee’s tenure, spending has increased by $37.1 billion to $71.9 billion. That is an increase of 43% after inflation. The governor’s budget would add another 14%,” the statement continued.

WPC added, “The Governor’s budget proposal is an exercise in irresponsible budgeting and should not be considered a serious attempt to solve the challenges Washington faces.”

“There is no budget shortfall. The state has increased spending on non-essential services assuming the record high tax revenues from the last few years would continue. “

WPC also noted that “Tax payer dollars have also been wasted on projects such as the state’s ‘One Washington’ technology project that is years late and millions over budget, electric ferries that are delayed (figuratively and in reality) and are costing tens of millions more than expected, massive public union pay increases negotiated behind closed doors and the waste and fraud that occurred with the Employment Security Department during the pandemic,” adding that “since the pandemic, state agencies have hired over 8,000 additional employees.”