Submitted by: W.G.E.N.
WA HB 1406 (sneaky entry of an Income Tax)
I wonder how many of you are aware of the latest attempt to install an INCOME TAX in Washington State?
Take a good look at this HB 1406
You can read the full bill at: http://lawfilesext.leg.wa.gov/
I will paste in a small part of it. DO NOT LET THEM SNEAK IN AN INCOME TAX - We have fought against such for decades.
Jackie Juntti
WGEN idzrus@earthlink.net
http://lawfilesext.leg.wa.gov/
HOUSE BILL 1406 State of Washington 67th Legislature 2021 Regular Session By Representatives Frame, Sullivan, Ormsby, Ortiz-Self, Kirby, Davis, Bateman, Valdez, Kloba, Pollet, Walen, Dolan, Simmons, Cody, Ramel, Lekanoff, Duerr, Ryu, Berry, Peterson, Hackney, Chopp, Macri, Bergquist, Riccelli, and Harris-Talley Read first time 01/27/21. Referred to Committee on Finance.
1 AN ACT Relating to improving the equity of Washington state's tax 2 code by creating the Washington state wealth tax and taxing 3 extraordinary financial intangible assets; amending RCW 43.135.034 4 and 82.32.655; adding a new title to the Revised Code of Washington 5 to be codified as Title 84A RCW; creating a new section; and prescribing penalties.6 7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 8 NEW SECTION. Sec. 1. (1) Washington has long led the way with 9 innovative and bold ideas that have changed the world. Many of the 10 world's greatest innovators and artists, engineers and entrepreneurs, 11 and scientists and social activists have called Washington home. But 12 Washington's status as an economic and social leader is threatened by 13 growing wealth inequality and a tax structure that perpetuates it. 14 Asking the state's poorest residents to pay six times more in taxes, 15 as a share of their income, than the state's highest income 16 households, including some of the wealthiest individuals in the 17 world, is unconscionable. 18 (2) The legislature recognizes Washington's tax system is the 19 most upside down and regressive in the nation. As a percentage of 20 household income, low-income families pay nearly 18 percent in taxes, 21 middle-income families pay 11 percent, and the state's highest income H-0544.1 HOUSE BILL 1406 State of Washington 67th Legislature 2021 Regular Session By Representatives Frame, Sullivan, Ormsby, Ortiz-Self, Kirby, Davis, Bateman, Valdez, Kloba, Pollet, Walen, Dolan, Simmons, Cody, Ramel, Lekanoff, Duerr, Ryu, Berry, Peterson, Hackney, Chopp, Macri, Bergquist, Riccelli, and Harris-Talley Read first time 01/27/21. Referred to Committee on Finance. p. 1 HB 1406 1 households pay three percent or less. Washington's overreliance on 2 low-income and middle-income families to pay for education, child 3 care, public health, housing, public safety, and other vital 4 government programs and functions is simply not sustainable. The 5 legislature finds that building a tax system that is fair, balanced, 6 and works for everyone is imperative for the long-term economic 7 growth of our state. Washington's wealthiest residents can and should 8 share more equitably in the responsibility of funding these key community programs alongside their neighbors.9 10 (3) Washington's inequitable tax code is particularly egregious 11 when you consider the size of the wealth gap in the United States, 12 and in Washington state specifically. According to Forbes, nine of 13 the world's wealthiest people reside in Washington state, and their 14 individual wealth ranges from $2,700,000,000 to $179,000,000,000. The 15 Washington state department of revenue estimates that there are 100 16 taxpayers with wealth in excess of $1,000,000,000 who reside in 17 Washington state. By comparison, median household wealth, or net 18 worth, in the United States is $64,000. The disparity between white 19 households and Black and Latino households shows an even wider wealth 20 gap. Whereas the median wealth for white families is $116,800, it is 21 just $1,700 for Black families and $2,000 for Latino families. Wealth 22 has shifted dramatically in the United States, and we now have the biggest wealth gap in 50 years.23 24 (4) The legislature further finds that over the last nine months 25 of the coronavirus pandemic, the stock market has reached a record 26 high and the cumulative wealth of the nation's billionaires has 27 increased by $1,000,000,000,000. At the same time, small businesses 28 are struggling to keep their doors open and families across this 29 state and nation are struggling to keep a roof over their head and food on the table.30 31 (5) Therefore, the legislature intends to disrupt the long32 standing systemic inequities in our tax code laid bare by the 33 coronavirus pandemic as we recover, rebuild, and transform Washington's economy.34 35 (6) The Washington state wealth tax is created by narrowing the 36 existing tax preference that exempts all intangible property and 37 assesses a modest one percent tax only on financial intangible 38 assets, such as publicly traded options, futures contracts, and 39 stocks and bonds. The first $1,000,000,000 of assessed value is exempt from the Washington state wealth tax.40 p. 2 HB 1406 1 (7) The legislature further intends to achieve equity by using 2 revenues generated by the Washington state wealth tax to offer 3 credits against taxes paid disproportionately by low-income and 4 middle-income families and small start-up and low-margin businesses. 5 (8) Finally, the legislature intends to invest the revenues 6 generated by the Washington state wealth tax to fund other critical 7 services, such as education, child care, public health, housing, and 8 public safety. The legislature finds that if Washington state wants 9 to continue its role as a global leader and attract, retain, and grow 10 the most innovative, creative, and talented residents in the world, 11 it must fund community investments and ensure that our state is a 12 place where every resident has a fair and equitable chance to not only survive, but thrive.13 14 NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this 15 section apply throughout this chapter unless the context clearly 16 requires otherwise. 17 (1) "Artificial person" means a corporation; limited liability 18 company; limited liability partnership, limited partnership, joint 19 venture, or any other kind of partnership; association; business 20 trust or any other trust; estate; association; or any other organization.21 22 (2) "Cash and cash equivalents" means currency and short-term, 23 highly liquid investments that are readily convertible to known 24 amounts of cash. "Cash and cash equivalents" includes money on hand, 25 certificates of deposit, checking account deposits, savings account 26 deposits, money market funds, cryptocurrency, and similar assets. 27 (3) "Day" means a calendar day or any portion of a calendar day. 28 (4) "Department" means the department of revenue. (5) "Domicile" means:29 30 (a) The same as in RCW 72.36.035, for purposes of a natural person; and31 (b) For purposes of an artificial person:32 33 (i) For a business, the principal place from which the business is directed or managed; and34 35 (ii) For artificial persons other than businesses, the place where the entity was organized.36 37 (6) "Fair market value" means the amount of money that a willing 38 buyer would pay to a willing seller for property in an arms-length 39 transaction if both parties were fully informed about all advantages p. 3 HB 1406 1 and disadvantages of the property and neither party is acting under a compulsion to enter into the transaction.2 3 (7) "Financial intangible assets" means the following assets: (a) Cash and cash equivalents;4 5 (b) Financial investments such as annuities, bonds, treasury 6 bills, mutual funds or index funds, stocks, publicly traded options, 7 futures contracts, commodities contracts, put and call options, 8 pension funds, mortgages and liabilities secured by real property, 9 certificates of interest in gold and other precious metals or gems, and other similar investments;10 11 (c) Units of ownership in a subchapter K entity; and (d) Similar intangible assets.12 13 (8) "Intangible assets" means both financial intangible assets and nonfinancial intangible assets.14 15 (9) "Nonfinancial intangible assets" means all intangible 16 property other than financial intangible assets, such as trademarks, 17 trade names, brand names, patents, copyrights, trade secrets, 18 licenses, permits, core deposits of financial institutions, 19 noncompete agreements, customer lists, patient lists, favorable 20 contracts, favorable financing agreements, reputation, exceptional 21 management, prestige, good name, integrity of a business, private 22 nongovernmental personal service contracts, and private 23 nongovernmental athletic or sports franchises or agreements. 24 (10) "Person" means any natural person or artificial person. 25 (11) "Subchapter K entity" means a partnership, including a 26 limited partnership, limited liability partnership, limited liability 27 limited partnership, limited liability company, joint venture, or any 28 other entity subject to subchapter K of the internal revenue code, 26 29 U.S.C. Secs. 701 through 761, including a single member limited liability company.30 31 (12) "Tax year" means the calendar year immediately preceding the 32 year in which the tax under this chapter is due and payable to the department.33 34 (13) "Taxable worldwide wealth" means a person's worldwide 35 wealth, excluding the fair market value of any intangible property exempt from the tax imposed under this chapter.36 37 (14) "Washington resident" or "resident" means the following: 38 (a) Any artificial person domiciled in this state at any time during the tax year; or39 (b) A natural person:40 p.
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