As President Trump takes office, one of his first agenda items is to slash taxes on corporations and the rich. The results will be more inequality and less revenue for the programs Americans rely on.
The good news? States can make their own tax codes more equitable. And everyday people can help.
In our state, Washington, people voted overwhelmingly this past November to protect our state capital gains tax on the ultra-wealthy. This was a hard-fought victory by a movement of people who believe we need a better tax code.
Let’s back up.
Despite our “blue state” status, Washington’s tax code has long been one of the most inequitable in the country because it over-relies on regressive measures like sales taxes and property taxes. That forces low- and middle-income earners to pay the biggest portion of their income in taxes to fund the programs and services we all rely on.
In 2010, an initiative to enact a tax on high earners in our state failed miserably. Although many people — including lawmakers — proclaimed the death of progressive taxes in Washington, advocates came together with a long-term goal of building public support for progressive revenue.
Our organizations were two of many that did this work. From interfaith organizations to affordable housing advocates to union leaders, we created coalitions to hold lawmakers accountable to build an equitable tax system.
In addition to organizing and legislative strategies, our coalitions prioritized shifting the public narrative.
With the help of public opinion, strategic communications, and messaging research firms, we spent over a decade talking to people in Washington to better understand their deeply held beliefs about taxes.
We learned that most Washingtonians felt the impacts of our upside-down tax code but didn’t realize just how much it favored the rich. And in focus groups and community meetings, we heard people vocally support taxes when they understood the services they provide.
In media interviews, legislative testimonies, community events, and town halls, we showed how creating a budget that funds our communities requires the wealthy to pay what they owe. We tied taxes to critical programs and services like child care, education, parks, and safety net programs.
We also highlighted how our tax code — which was designed to favor white, land-owning men over everyone else — is harmful to communities of color and low-income people.
Buoyed by grassroots organizing and legislative efforts, national momentum for taxing the rich, and some wealthy spokespeople who said “we want to pay this,” our coalitions helped our legislature pass a capital gains tax in 2021. We also helped pass a Working Families Tax Credit that year, a cash boost for people with low incomes. Together, these policies started to holistically fix our tax code.
Our state capital gains tax is an excise tax on the sale of high-end stocks and bonds. Many extremely wealthy people are able to hoard wealth from selling these stocks.
In its first two years, our modest capital gains tax on the richest 0.2 percent of Washingtonians brought in $1.3 billion to increase access to affordable child care and support school construction projects. But as soon as it passed, a handful of uber-wealthy individuals filed a lawsuit to repeal the tax.
Ultimately, the state Supreme Court upheld it. The last test was on the ballot in November. We soundly defeated Initiative 2109, a last-ditch effort to repeal the tax. Over 64 percent of voters — including majorities in right-leaning counties — supported keeping the capital gains tax in place to fund schools and child care.
Our win — which many thought impossible a decade ago — was a bright spot nationally this fall. We still have a long way to go towards a just tax code, but it’s possible to flip the script and build public support for progressive revenue. Wherever you live, we hope your community is the next to make that happen.
This piece was originally published on our sister site OtherWords.org.
