Institute on Taxation & Economic Policy

Definitions for wherever needed: A progressive tax structure taxes somewhat higher those whose incomes are higher, on the idea that more income is disposable, than those whose income are lower. A regressive tax policy hits the lower-income people harder.

In this study (hat tip to Horse’s Ass for noting it), the Institute on Taxation & Economic Policy concludes that Washington’s tax setup, with its heavy reliance on the sales tax (which proportionately hits lower incomes harder), is the most regressive in the nation.

The use of the income tax in Oregon and Idaho make those states a lot less regressive.

Goldy at Horse’s Ass puts it this way: “If we were to totally eliminate our state and local sales tax, property tax, B&O tax and various excise taxes and fees (gasoline, alcohol, tobacco, etc.), and replace the revenue with a single graduated income tax that levied a 2.9% rate on our wealthiest households (those with an average income of $1.8 million), and a 17.3% rate on our poorest (those earning an average of $11,000), with those in the middle three quintiles paying between 9.5% and 12.7%, it would have the same exact impact on Washington families as our current tax system does now. Can anybody reasonably argue that such a system would be fair? I don’t think so. But that’s exactly what we have now.”