Friday, April 3, 2009

Washington Democrats weighing income tax idea, gov says no

I was surprised to see that Washington state is considering adding a state income tax to its legislative agenda given the reasons why it has avoided such a measure in the past. I believe that by pushing forward with this idea is not a very good move for the state because one of the best ways to encourage people and corporations to move into the area is this very incentive. Yes, it would give the state a short term fix in closing the gap on the budget shortfall, but once the economy recovers do they really want to risk losing potential citizens because of the tax. I hear all the time when I watch free agency take place in sports how athletes choose locations based on the lesser tax burdens they will have to face if they switch to a different city. I have also seen people like Derek Jeter claim to be a resident of Florida when we all know he plays and lives most of the year in New York with the Yankees. Tax incentives clearly draw in people to move or claim residency and based on that economic growth will come around to meet similar costs that could be accrued through more taxation.

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