Thank goodness for sales tax in WA | Federal Way letters
Published 11:38 am Tuesday, January 12, 2010
The Jan. 9 issue of The Mirror contained three related articles: “Schools prepare for lean budget,” “Top priorities for legislators” and “Unzipped by the underground.”
After reading them, I concluded all government, from the federal to state to county to city, must prioritize programs and services to match tax-dollar revenues. Raising taxes in these desperate economic times is not a viable solution for protecting school programs and/or social and medical services and benefits for the less fortunate among us.
As we all know, many families and businesses are already struggling with a variety of financial difficulties. Taking away more of their money by increasing taxes would only magnify those problems. Government officials need to determine which programs and services are “must haves” and allocate tax revenues along a descending scale. Those at the top get funds first and when there is no money left, the spending stops. Government must learn to live within its income, just like individuals, families and businesses must do.
Thank goodness we live in a state with a sales tax and not an income tax. The sales tax captures income generated in the underground economy that is rarely, if ever, reported on federal or state income tax returns. Such income includes not only that from illegal activity such as prostitution and drug dealing, but the receipt of income earned and paid in cash “under the table” in legitimate industries. At least that income is taxed somewhat when it is spent. We only have to look to income tax states like Oregon to see what happens in times of economic stress and high unemployment. Personal income drops so taxable income drops, and tax revenues drop correspondingly.
Our state legislators, county council members and city council members have a duty to act in the best interests of the citizens they serve. We can only hope they will live up to that duty by melding fiscal restraint with social responsibility, by prioritizing spending to match current tax revenues.
George A. Jackson, Federal Way
