Washington Gov. Jay Inslee appeared in Vancouver on Tuesday afternoon to sound the alarm over a proposal circulating in Congress that he said would “victimize hundreds of thousands of Washington taxpayers.”
Currently, Washington residents are permitted to deduct their local sales and property taxes from their federal income taxes. Congressional Republicans are considering removing the deduction as part of a larger overhaul of the tax code.
Speaking at the Vancouver Firefighters Local 452, Inslee called it a “morally wrong” idea that he said would give a sizable tax break to the country’s wealthiest at the expense of Washington residents. Calling the proposal a “midnight raid of middle-class families’ incomes,” Inslee called on local congresswoman Jaime Herrera Beutler, R-Battle Ground, to oppose it.
“This is an emergency,” said Inslee. “And it’s an emergency because Republicans want to do this quickly before anyone finds out what’s going on.”
Last week, the U.S. House passed a budget resolution, with the support of Herrera Beutler, paving the way for tax reform. The resolution narrowly passed, raising concerns that Republican divisions could sink the effort.
Inslee noted how attempts by congressional Republicans to repeal the Affordable Care Act were ultimately unsuccessful after lawmakers received pushback from constituents. He said he respected how Herrera Beutler voted against the repeal of the health care law and said that “her vote could be absolutely pivotal” in opposing tax reform.
In an email, Herrera Beutler’s spokesperson Angeline Riesterer wrote that the congresswoman is still reviewing the details of the tax reform proposal.
“It’s very possible that the sum of all its pieces will ease the burden on hardworking taxpayers, and that’s what Jaime would like to see from the final tax reform package,” wrote Riesterer.
In response, Inslee said it’s already clear that Republican tax reform plans will adversely affect the middle class, contribute to the federal deficit and hurt the economy if passed.
Vancouver Mayor Pro Tem and mayoral candidate Anne McEnerny-Ogle appeared alongside Inslee. She called the deduction “fundamental to the way we budget” and critical to how cities finance services.
Last week, Inslee and leaders of the Washington State Association of Counties wrote a letter to the state’s congressional delegation asking them to oppose the repeal of the deduction.
Citing federal data, the letter stated that 30 percent of tax filers in Washington claimed the deduction in 2015 at an average value of approximately $7,400 each, or $7 billion in total across the state. According to the letter, repealing the deduction could mean a federal tax increase for over a million Washington residents, 85 percent of which are middle class.
Patty Murray and Maria Cantwell, Washington’s Democratic senators, both issued statements indicating that they shared Inslee’s concerns that eliminating the deduction would mean higher taxes for Washington residents.
