Initiative 1098, the tax reform proposal offered by Bill Gates Sr., will be good for Washington, and particularly beneficial for Southwest Washington. I-1098 will result in new investments in education and health care, tax cuts for small businesses and property owners, and a modest new tax strictly limited to the richest 1 percent.
Main Street small businesses struggling to survive this recession are among I-1098’s biggest beneficiaries. Under I-1098, more than 80 percent of businesses will be fully exempt from paying business and occupation taxes, and another 12 percent will receive a significant B&O tax cut.
For middle-class families as well as businesses, I-1098 also reduces the state portion of the property tax by 20 percent. That totals $400 million, money families and businesses can turn around and spend.
In order to invest in higher-quality education and more comprehensive health care, 1098 adds a modest tax which is strictly limited to adjusted annual gross incomes over $200,000 for individuals and $400,000 for couples. In other words, a couple earning $401,000 would pay tax on only $1,000. Couples earning less than $400,000 pay nothing.