The King County Regional Policy Committee heard a panel presentation yesterday on Seattle's income tax. I had the opportunity to address the Committee along with John Burbank of the Economic Opportunity Institute. You can see video of our panel discussion here.

The only members of the Committee not in attendance were the two representatives from the City of Seattle (Juarez and Sawant). Before the panel discussion started Committee member Larry Gossett asked why there would continue to be debate about this if state law says you can't have a local income tax. I was tempted to say Mr. Gossett gave my presentation for me. 

I focused my remarks (start at 26:32 of video) addressing the state's historical debate on income taxes. This included highlighting the 6 constitutional amendments and 4 ballot measures the voters have rejected and the numerous state Supreme Court rulings reiterating that income is property and if you want a graduated income tax you need to amend the constitution (particularly the 1951 and 1960 rulings). I also briefly discussed the statutory restrictions making a local income tax illegal. 

Legal issues aside, I reminded the Committee of the competitive advantage no state or local income tax provides us as highlighted by the state Department of Commerce and state officials wooing Amazon for HQ2. We also briefly touched on the volatility problems associated with income taxes and the uncertainty states are now facing under the new federal tax reform capping the state and local tax deduction. 

I concluded my remarks by reiterating if this debate continues it should happen in the legislature (not the courts) but based on the fact the voters have rejected income taxes 10 straight times, the debate should already be settled. 

Additional Information
Timeless advice from WA Supreme Court on income taxes
Washington officials say no state income tax is competitive advantage
Local income taxes are illegal in Washington