Washington State Tax Fact #4: The Tax Will Strain Family Budgets

The billion dollar I-884 tax hike will place a huge burden on family budgets. The Washington Policy Institute found that the proposed sales tax increase from 6.5 percent to 7.5 percent would cost the average person $115 a year.

Because sales taxes are tacked onto the price of goods, disposable income would go down by $931 million statewide. While some items are exempt from the sales tax, essentials like housing and over-the-counter drugs would cost more.

The biggest losers: low-income earners and families with children. The poor pay a disproportionate amount of the sales tax relative to their income, and families with children may owe even more because of child-related expenses.

I-884 will cost everyone in Washington– and many families can ill afford to pay that extra $115 a year.

For more information, please visit http://www.freedomworks.org/washington