Alarmed by what she called falling support for Washington’s public schools, District 32 State Rep. Maralyn Chase, D-Shoreline, has introduced what has been dubbed the Fair School Funding Act.
According to Chase, whose district includes Kenmore, the act would raise an estimated $2 billion to $4 billion for state schools through a 1 percent tax on intangible property, a tax Chase’s office contends would apply to less than 5 percent of state residents.
“Our schools are already suffocating from inadequate funding and are now threatened with devastating budget cuts because of the economic crisis,” Chase said. “The Fair School Funding Act would rescue schools from dire financial straits without the need to increase sales taxes, regular property taxes or business taxes.”
Chase’s act would close what her office described as a loophole in state law exempting from state taxes such intangible property as stocks, bonds and interest certificates in gold.
Again according to Chase’s office, the Fair School Funding Act – House Bill 2350 – includes several provisions that limit the tax to only the wealthiest persons.
For example, information provided by Chase states retirement plans, profit-sharing, annuities, stock bonus plans, IRAs or funds in checking accounts would be exempt.
Additionally, every individual would be able to exempt $100,000 of intangible property from the tax.
“Some people call this reform the ‘millionaire’s tax’ and that’s fine with me,” Chase said. “In a state with no income tax, it is not unfair to ask the very wealthiest individuals to contribute a little more in taxes for the sake of saving our schools.”
Chase contends that because Washington lacks an income tax, it perennially ranks among the states with the most regressive tax systems. She argues that means lower and middle-income families in Washington pay a higher percentage of their earnings in taxes than wealthier families.
The Washington State Constitution states that funding of education is the paramount duty of the state, yet Chase said Washington is well below the national average in education funding.
“For the sake our kids’ future and our own, we have to stop the bleeding and reverse the decline in education funding,” Chase added.
