August 17, 2004

The Impact of the Ron Sims Tax Plan on Washington Tax Fairness

report

Washington’s tax system is regressive, requiring low- and middle-income families to pay far more of their income in tax than wealthier Washingtonians. A tax reform plan recently proposed by gubernatorial candidate Ron Sims would change the state’s tax system by repealing the state’s general business tax and the state sales tax, creating a $100,000 homeowner’s exemption from the state property tax, and introducing a personal income tax. This analysis looks at the factors shaping tax fairness in Washington, and estimates the impact of the Sims proposal on the overall regressivity of the tax system.

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