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Bill would allow creation of local income taxes, but only following tax cuts

The bill's sponsor says the law would likely face legal challenges in Washington state, where income taxes are unconstitutional.

OLYMPIA, Wash. — State law prohibits income taxes in Washington state, but a proposed bill would allow cities and counties to create income taxes, with a catch.

Under Senate Bill 5554, after local governments cut taxes like the sales tax or property tax, they would be allowed to create income taxes to make up for the funding gap.

”There's no new revenue involved in this whatsoever. It's just a trade-off of progressive taxes for regressive taxes,” said bill sponsor Sen. Bob Hasegawa, D-Seattle.

The Seattle Democrat said current tax laws benefit the wealthiest in the state.

“There’s so much suffering going on at the middle to lower end of the income scales, but the top end of the income scales are just going gangbusters, and there's a problem with that,” said Hasegawa.

Republican Sen. John Braun views the bill as a way to eventually establish a statewide income tax.

Braun also said Hasegawa’s law would be unconstitutional, and would likely require a constitutional amendment, which would need voter approval.

Washington voters have repeatedly rejected attempts at establishing income taxes.

“The people of the state of Washington don’t support an income tax,” said Braun, R-Lewis County. “I don’t think that’s a partisan issue.”

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