By The Skanner News Published: 26 February 2021
Recently the House Finance Committee held a public hearing on HB 1465, a bill to increase the rate for Washington’s death tax to as high as 40%, depending on the size of the estate being taxed. The Washington Policy Center's Vice President for Research, Paul Guppy today released a study on the bill. The Legislative Memo presents a brief summary of the bill, reviews concerns regarding the protection of equal rights, and describes the overall negative effect the bill would have on the public interest in Washington State.
- HB 1465 would increase the rate for Washington’s death tax to as high as 40%.
- It would give Washington the highest death tax rate in the country, and one of the highest in the world.
- Only 18 states impose the tax; most states impose no tax on people at the moment of death.
- The death tax is especially hard on low-income and immigrant families trying to build a business.
- Sections 7 and 8 of the bill appear designed to target certain racial and ethnic groups in a way that likely violates the Washington Civil Rights Act.
- The state has no need for a new tax; the current budget is balanced and lawmakers estimate they will receive 7% more revenue in the next budget.
- Repeal would end the unfair impact of the tax while bringing tax policy in Washington into line with the best practices of other states.
Read the full report here.