Today’s supreme court ruling shows killing off taxes doesn’t work w/ lawsuits. Only way to kill off capital gains income tax is w/ I-1408.

Thurs, Sept 30, 2021

It was a tax on large out-of-state banks. It was passed into law in 2019. Our side said it was obviously unconstitutional under numerous state and federal court precedents. And our side said it was passed into law in an unconstitutional way (title-only bill).

And after Inslee signed it into law, our side did what our side always does: spent a ton of money on lawyers to file lawsuits challenging the tax.

And guess what happened?

This morning, all 9 injustices on the state supreme court upheld the tax.

In their ruling, they said the bill contained lots of explanations for why this tax was OK. And those explanations gave all 9 injustices plenty of “legal cover” to uphold it.

This year, the Democrats passed into law Engrossed Substitute Senate Bill 5096. The bill is very clear: it imposes an excise tax on the sale of long-term capital assets – the rate of the excise tax is 7% and it’s levied on the sale of long-term capital assets above $250,000. The Democrat sponsors of the bill say it’s an excise tax, and they point to the text of the bill where it offers lots of explanations for why this is an excise tax.

After Inslee signed the bill into law, what did our side do?

Spent a ton of money on lawyers to file lawsuits challenging the tax.

Inslee has said he’s “very confident” the court will OK the tax.

After this morning’s 9-0 ruling on the bank tax, he’s feeling doubly confident.

LAWSUITS (AND REFERENDUMS) DON’T WORK BECAUSE THE LEGISLATURE WRITES THE BILL

Rep. Jim Walsh drafted Initiative 1408 to prohibit “any tax based on personal income, whether called a payroll tax, excise tax, or any other name.”

This is why Jim’s initiative will succeed and the lawsuits will fail.

As attorney Joel Ard wrote in his legal analysis, it doesn’t matter how the legislature “characterizes the tax” – they can give it any name they want – but if the tax is BASED ON PERSONAL INCOME, then it is prohibited.

And I-1408 explicitly repeals ESSB 5096’s excise tax (section 3) because, as Joel wrote: “It explicitly identifies, in the ballot title and content, a specific, unique, first-time-ever state excise tax that is ‘based on personal income’ (recently passed 2021 c 196 (Engrossed Substitute Senate Bill No. 5096) s 5). In order to fully implement a ban on such taxes, it must also repeal the only current state wide implementation of such a tax.”

Again, this is why I-1408 will succeed and the lawsuits will fail.

But initiative campaigns are difficult. Getting 400,000 signatures in a short period of time is very hard. But once qualified for the ballot, I-1408 will not be costly to get approved. Opponents will spend millions, but it’ll easily get 65% of the vote because the lion’s share of voters don’t want any kind of income tax (as has been illustrated 10 times). And even more will appreciate I-1408’s prohibition on future income-based taxes.

I-1408 is the only chance we have to eliminate current and future income-based taxes (and thus kill off the Democrats’ capital gains tax and Seattle’s payroll tax).

Larry, Sid, and I are honored to be promoting Jim’s initiative.

I won’t be making any money helping this initiative (because of WA’s AG).

My focus is on getting this ridiculously unconstitutional ruling overturned.

So I’m only urging you — while I’m fighting to help our state and our nation with my initiative efforts — is to help me fight back against Fascist Fergie by donating to my legal defense fund.

I’m very grateful for all the prayers and support of thousands of you who helped me and my family survive this blatant abuse of power by the AG.

Please donate TODAY so I can pay Richard Sanders to appeal these ridiculously unconstitutional restrictions:

Mail your check to: Tim Eyman Legal Defense Fund, 500 106th Ave NE #709, Bellevue, WA, 98004
Or donate online: TimDefense.com

Don’t let the guy who robbed us of our $30 tabs get away with this:

As you know, we worked really hard on Initiative 976:

Karen and I sacrificed a lot — we sold off our retirement fund to kick-start its signature drive:

And now, a message from Sid Maietto and Larry Jensen:

We’re asking folks to donate to our PAC so we can stop all current and future income-based taxes with Jim Walsh’s Initiative 1408: 

The taxpayers of Washington need our help now more than ever. Donate to our political committee so we can keep fighting for you:

Mail your check — made payable to “Permanent Offense (I-1408)” — to: Permanent Offense (I-1408), PO Box 6151, Olympia, WA, 98507
Or donate online: PermanentOffense.com

Kindest Regards, 

Sid Maietto & Larry Jensen

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Thanks everyone.

We love you all.

Larry, Tim, & Sid