Washington State Tax Fact #7: The Poor Will Be Hit Harder

Proponents of the I-884 sales tax hike claim that the measure will help the poor. The truth is that sales taxes are inherently regressive—a disproportionate amount of the billion dollar tax hike would fall on the shoulders of low-income families.

The Washington Policy Institute found that families earning under $20,000 a year would have a relative burden twice as large as those earning over $130,000 a year. This is because lower income households tend to spend a higher percentage of their income in order to meet basic needs.

Although the poor are hit harder, all Washingtonians will be hurt by the tax increase. Middle-class families with incomes in the $40,000 to $50,000 range will pay $195 a year more in taxes.

Low-income families are already struggling to make ends meet because of Washington’s unreasonable 6.5 percent sales tax rate. It will be even tougher if I-884 passes, giving Washington the highest sales tax in the country.

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

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