Article I, Section 8 of the United States Constitution clearly states how our forefathers felt about the taxation of American citizens. “The Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide the common defence and general welfare of the United States.”. We have many advantages as citizens of this great nation but along with that comes the responsibility of ensuring that our local, state, and federal government are funded and functioning in a way that ensures we all will be awarded the same opportunities in the future.
Taxation is not a new concept for any of us and the burden of taxes falls on citizens who benefit from living and working in the places they call home. I am convinced beyond doubt that raising the taxes on the wealthiest portion of the population is a solution that is not only rational, but absolutely justified, when it comes to reducing budget cuts for providing state residents with the basic infrastructures of quality living.
The Institute on Taxation and Economic Policy maintains that the state of Washington has the most upside-down tax code in the entire country. The lowest earning residents in the states pay a rate six times greater than what is paid by the wealthiest households since billionaires earn majority income from investments (like stocks and bonds), which are levied at lower tax rates. Taxes on local income, capital gains taxes, and wealth taxes are simple ways to balance the existing inequality in the current tax system.
Economists deduce that the government could raise most of its much needed revenue exclusively from this small group of affluents while still allowing them to take home a majority of their income. Several Billionaires have come forward stating their willingness to pay more taxes in order to do their share in supporting local and state economies. Their reinvestment potential, even with higher tax rates, would cause minimal to no damage to them as individuals, while the state government (and by extension the citizens of Washington) would greatly benefit.
The economic gap between the top earners (1%) and the bottom 90% of earners continues to widen within the United States while the government struggles to provide resources for its citizens. Local and state governments are tasked with ensuring affordable housing, nourishment, health care and education for the communities they serve and the money used in providing these services must come from somewhere. The idea of taxing the rich and using the amount for infrastructure development and welfare seems like a sensible solution that anyone could get behind. A survey of 500 Washington voters drew the same conclusion. The survey shows that voters strongly supported proposals to address the economic crisis through tax increases on wealthiest households and on capital gains, rather than service cuts. The taxes thus collected can be best utilized to provide loans and grants to the struggling businesses and also fund public services.
Taxes are not punishments for being wealthy, but the cost of living in a civil society. Governments are well within their right, under the constitution, to tax individuals in order to support their economies. Local taxation imposed by cities, capital gains taxes imposed by the state, and wealth taxes which minimally impact those they effect, are all ways that we can ensure a smooth running government for years to come.
