WASHINGTON — Washington Governor Bob Ferguson says in order for him to support the proposed Millionaire’s Tax, big changes are needed to the sales tax and small business tax structure.
“It’s not just taxing the wealthy, right? It’s taking a significant amount of those dollars and helping out folks at the other end of the economic ladder,” Ferguson said.
His proposal: Two sales tax holidays, one two-day and one three-day and expanding sales tax exemptions.
Groceries are one of the few mainstream household items exempt from sales tax. The Senate version of the millionaire’s tax, which passed this week, includes hygiene products. Ferguson says it should apply to baby products like diapers as well.
“It’s not eliminating the cost entirely, but every little bit saved is money that goes back into the pockets of families who need it,” Morgan McGinn said, the development director for WestSide Baby, a non-profit that connects baby products for families in need.
A nonprofit, WestSide Baby, reports 23% of families in King County struggle to afford diapers. They helped 30,000 individual babies last year by handing out 2 million diapers.
McGinn says there is likely the demand for double what they’re able to give out, noting the need increases each year for the 25 years the organization has operated.
“We would love to work ourselves out of a job because people have everything that they need and we’re just not there.” McGinn said.
WestSide Baby also helps in obtaining formula, toys, and car seats for children. McGinn says relief on those things could be the difference between a family making rent, a utility bill, or getting a few extra things at the grocery store.
“It just seems like a practical approach to a problem that, you know, we’ve been seeing consistently over the years. Again, it’s not solving the problem, but it’s doing something and inching a little bit closer to getting where we need to be,” she said.
Washington has long been ranked as having one of the most regressive tax structures in the nation, meaning people of lower incomes pay a greater share of their income in taxes when compared to higher earners. The Millionaire’s tax is an attempt to ease the burden.
“It’s hard to afford life in this state,” said Sen. Drew Hansen, a Democrat representing Kitsap County.
Hansen was one of three Democrats to vote against the Millionaires’ Tax. He says more exemptions would help even the balance, including a clothing exemption up to a certain price.
“We’re looking at everything that’s driving costs for families in the state and figuring out what we can do to ease the burden a little bit.” Hansen said.
No Republican supported the bill in the Senate. As it heads to the house, Aberdeen Republican Jim Walsh has his own idea.
“This is a silly proposal. We’re going to stop charging the sales tax on shampoo. How about we just cut the sales tax in general?” Walsh said.