Washington State Income Tax Unveiling Washington's Tax History: The Rise and Fall of the Income Tax That Almost Was

 

KUOW listener Steven Thompson:

"My name is Steven Thompson from Olympia, Washington: I was wondering what the history of the political allergy to income tax in Washington State was. Has Washington ever had an income tax?"

Reporter Carolyn Adolph:

"Actually, the people of Washington State did approve an income tax. It was the Great Depression, and people were so excited about it they voted twice! First, they changed the state constitution to allow the tax in 1931, and then they approved the tax itself -- 70 percent in favor!

The Legislative Push:

To get it to the voters, lawmakers had to stretch time. They covered the clocks in the legislature and just squeaked the tax law through at session's end. All this because so many people had no money, and they believed someone else could be found to pay. Business people knew they were the target, and they fought back. Their challenge made it all the way to the state Supreme Court, but the eight judges deadlocked and the ninth judge -- a guy named Emmett Parker -- didn't show. His heart condition ends his career and kills the momentum.

The Appointment and the Chaos:

The governor appoints a pro-tax judge just as the forms are being printed, but it's too late. The tax forms land in mailboxes, and people freak the hell out because suddenly this income tax thing is real. Back at the Supreme Court, the second hearing is on, and the new judge rules in favor of the income tax.

The Unexpected Twist:

But wait! Another judge switches sides! Oscar Holcomb, former yes-man, declares the state income tax unconstitutional. Did the tax form freak him out leading to fiscal fiasco? We'll never know.

The Aftermath:

But it doesn't matter because the people of Washington State have never voted in favor of an income tax again."