Income Tax Ban Could Be Reality for Millions

Supporters of a Washington resident-backed initiative trying to officially eliminate personal income taxes in the state got their first hearing before the legislature on Tuesday.

Washington residents haven’t paid personal income taxes in almost a century thanks to a 1933 decision by the state Supreme Court, but those backing Initiative 2111 want to make sure that things stay that way, cementing the existing practice into law. I-2111 would prohibit state, counties, cities, and other local jurisdictions from imposing or collecting income taxes.

The initiative is backed by Brian Heywood, a business owner from Redmond, Washington, and Republican Rep. Jim Walsh of Aberdeen, who are supporting a total of six initiatives aimed at the 2024 ballot. These GOP-backed citizen initiatives face the hurdle of being considered and enacted by state lawmakers, with Democrats solidly in power in the state.

State lawmakers have until March 7 to decide to pass the measure in the terms it was presented to them, pass an alternative or refuse to act on it at all. The initiative would then be presented directly to voters—who Heywood said are fully in support of the measure.

“If we have told you once, we have told you eleven times: we do not want any type of income tax in Washington state. Sincerely, the voters,” Heywood told Newsweek in a written statement.

“Today supporters from across the state are making their voices heard in Olympia,” he added. “They meant it when they said ‘no’ to an income tax every other time progressives tried to implement one.

“Despite over $19 billion in surplus funds taken from taxpayers, radical progressives in Olympia are still trying to figure out ways to create an income tax. No means no. We don’t want a front door income tax and we don’t want a backdoor income tax.”

Newsweek contacted Rep. Jim Walsh for comment on Wednesday morning by email.

But not everyone is on board with eliminating income taxes in Washington. Almost 6,000 people signed in favor of the measure, according to reports, while 670 signed in against it.

“States that go down this road of restricting the tax options available to residents and their representatives often have more trouble addressing upside-down tax codes, recovering from recessions, and maintaining adequate revenue in a changing economy,” Dylan Grundman O’Neill, a senior analyst with the Institute on Taxation and Economic Policy, told Newsweek.

“Washington’s tax code in particular is severely imbalanced, the second-worst in the nation in terms of taxing its richest residents at the lowest rates and middle- and low-income families at much higher rates,” he continued.

“That crucial issue should be a top priority for any tax changes in Washington, but Initiative 2111 would do nothing to address it and generally seeks to reduce rather than expand the options available to Washingtonians.”