Rising inflation, surging poverty, and the looming threat of mass unemployment—are we reliving the 1930s, or glimpsing America's future in the 2030s? At the federal level, it's clear who is driving the chaos and distress through program cuts and job losses. by Eli Taylor Gos s Rising inflation, surging poverty, and the looming threat of mass unemployment—are we reliving the 1930s, or glimpsing America's future in the 2030s? At the federal level, it's clear who is driving the chaos and distress through program cuts and job losses. But at the state level, there are some special interests out there trying to sew confusion about who is to blame for the $12 to $16 billion state budget deficit that we anticipate could result in additional cuts and job losses. To top it off, Washington state’s budget shortfall just got worse—by $845 million—according to the latest revenue forecast. Maybe you (or whoever in your life watches sports) saw the commercials during this year’s Super Bowl from a group called Enterprise Washington trying to make the claim that the state budget is “bloated” due to “wasteful overspending.” But let’s talk about who is funding Enterprise Washington: It’s bankrolled by corporations like T-Mobile, Walmart, Microsoft, and Alaska Airlines.Of course, they want us to believe the problem is wasteful spending to distract from the real issue: our state’s outdated and inequitable tax code, which lets the wealthiest avoid paying their fair share. As a result, everyday workers pay a higher effective tax rate than the ultra-wealthy.It’s easier to blame the decisions of elected officials who have inherited a tax code infrastructure older than the Space Needle. The legislature has been making difficult decisions with a severely limited revenue stream for years that has trickled down to barely a drop.We have reached a breaking point in what our tax code can reasonably generate, while still meeting all the needs of a modern state budget. Our communities want a budget that amply funds schools with enough mental health resources to fully serve all students, expands affordable childcare, increases access to healthcare, and preserves safety net programs like food banks and more. Like the water held at the top of dams, our tax code allows for wealth to stay concentrated upriver while our communities are left fighting over limited public resources downstream. Even worse, our state's primary tax system has remained virtually unchanged since 1935. How is that possible?During the Great Depression, residents struggled to pay property taxes, the main source of revenue for the state budget. Voters knew that property taxes alone weren’t sustainable—and they created added hardship for people who had lost their jobs. In 1932, voters passed an initiative for a state income tax (See: Washingtonians did want an income tax at some point) and an initiative restricting property taxes in an attempt to balance it all out.But, the Washington State Supreme Court later deemed the income tax unconstitutional. Given the severe reduction in revenue from property taxes, the legislature passed the 1935 Revenue Act to keep the state government from collapsing. This effectively created the now super-outdated tax code we have today, which primarily relies on the following: 1) State sales tax 2) Business and Occupation (B&O) taxes3) Gas tax 4) A restricted property tax (which today only funds roughly 20% of our budget)Antiques can be charming, but an outdated and unreliable tax code is not. For over 90 years, Washington’s tax system has failed to evolve alongside our economy. From the tech boom to shifts in agriculture, trade, consumerism, and hospitality, our state has changed—yet our tax structure remains stuck in the past. Washingtonians deserve a fairer, more modern tax system that reflects the realities of our lives today. And yet here we are today, in a situation where our state does not have the tax revenue needed to pass a state budget that amply funds our communities. Because our tax code over-relies on those with the least to pay the highest tax rates as a share of income. Meanwhile, the ultra-wealthy and hugely profitable corporations get a special deal. (Seriously, just take a look at the map below to see how much the wealthiest 1% in Washington state are benefitting from our tax code.)  Some legislators and our Governor are proposing billions in cuts to affordable childcare and teacher pay. They also seek to reduce state worker wages and hours, making it even harder for these workers to effectively deliver the programs taxpayers have already funded. If federal cuts continue to gut public services and state-level reductions further weaken our infrastructure, what options do residents have to get ahead, let alone stay afloat and survive? Add to that the president’s threat to withhold $23 billion in federal funding because of our sanctuary state status—a move with not only devastating moral consequences for undocumented individuals and refugees but also a massive blow to our economy. When we look back on this moment in history, what will lawmakers with vision and integrity hope to say? That, under a Trump administration, they sacrificed the security of our most vulnerable residents for the sake of political convenience?The question before our legislature and new Governor is this: How do we pass a balanced state budget, with a looming threat of greater federal cuts, in a way that keeps the economy and small businesses healthy while reducing income inequality? The answer is clear: Lawmakers must pass progressive revenue to ensure working families who are already overburdened and at risk of financial collapse do not get harmed by across-the-board budget cuts. Progressive revenue ensures that higher earners, whether individuals or businesses, pay their share into our tax pool. Options being discussed include a wealth tax, a high earner payroll tax (a statewide version of the successful Jumpstart tax), and changes to our B&O tax structure to tax businesses over $500 million and banks with over $1 billion and more. We know that the people of Washington want these kinds of progressive taxes that ensure the ultra-wealthy and corporations pay what they owe. They made that loud and clear when they overwhelmingly voted to uphold the capital gains tax on the ultra-wealthy and fees on corporate polluters in the November election. What kind of Washington do we want to set ourselves up to be? Do we really want to be backing our own state-level DOGE cuts, mirroring the other Washington? Or do we want to be the kind of Washington that proves to the rest of the country — and to history — that it’s possible to care for each other and fight back against systems that privilege the ultra-wealthy and powerful?The legislature has until April 27th to decide what kind of Washington they want to be. Eli Taylor Goss is the executive director of the Washington State Budget and Policy Center, a research and policy organization that works to advance economic justice. ...read more read less