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Published: Sunday, April 25, 2010

I-1077 could initiate class warfare in Washington

Is this the real life? Is this just fantasy?

Poet-philosopher Freddie Mercury’s words sum up much of the reaction expressed to me about this week’s news of another ballot quest for a state income tax.

History isn’t on the side of those pushing Initiative 1077. There’s been a losing streak for such ideas since a Depression-era win in 1932 got tossed out by judges.

No matter the content of the plan or the character of its authors, the result is defeat. Even immensely popular Republican Gov. Dan Evans tried twice in the 1970s to no avail.

Yet Wednesday morning in Seattle, the epicenter of liberal causes, venerable Bill Gates Sr. signed a petition for the initiative requiring that the state’s wealthy, like him, pay an excise tax on their income.

He’s a smart guy and sire of a pretty successful son. He’s surrounded by smart people with a portfolio of political success stories. So what are they thinking?

Maybe they didn’t see or hear the thousands of people around Washington who spent part of April 15 chanting their disaffection for new taxes and government spending — both of which are fomented by this initiative.

They’re clearly convinced voters’ moods will change once they read it for themselves.

To be fair, Initiative 1077 will do more than just tax the rich, defined as a person earning at least $200,000 a year, or couples with a joint income of at least $400,000.

This measure also would cut the state portion of property taxes by 20 percent, about a $100 savings for owners of a $200,000 home. And it would end the business-and-occupation tax paid by most small businesses.

Campaign spokesman Sandeep Kaushik said there is a “reasonable prospect of being successful” if voters have a “clear understanding” of all the elements in the initiative.

To be honest, they probably won’t. Tax reform is complicated and debate about it rarely rational and almost always emotional.

One cannot fathom deep conversations among a million-and-a-half voters in the midst of a fierce campaign about to be waged between July and Election Day. Not in this era of texts, tweets and manipulative 30-second television commercials.

This will boil down to where most voters invest their trust and express their anger.

Supporters’ not-so-subtle strategy will need to be, essentially, class warfare.

They think voters are frustrated with capitalism’s nobility and ripe for a battle to exact a little financial revenge in Washington state.

Opponents are counting on Washingtonians’ visceral reaction to the words “income tax.”

They know residents distrust government and suspect an income tax on those wealthy people today could become an income tax on them tomorrow. Realizing that the $1 billion generated by this proposal won’t erase the state’s budget deficit, they presume it’s only a matter of time before an expansion of the tax is sought.

Initiative authors insist voters will get a say before that happens.

In response will be heard: Remember Initiative 960?

That required a vote on any tax hike until majority Democrats decided the people couldn’t be trusted to vote the right way. They suspended it, then increased taxes themselves.

If Initiative 1077 passes, it will be the magnum opus of the progressive-labor movement.

Their success, however, may cost a few Democratic lawmakers their jobs this fall.

They won’t be able to avoid the question and their position on it could be the only answer undecided voters seek. This issue may be the decisive litmus test in close races.

Alas, for those Democrats who already voted to hike taxes on candy, gum, beer and soda pop, their fate may already be sealed.

To paraphrase Mercury, they’re caught in a landslide, no escape from reality.

Political reporter Jerry Cornfield’s blog, The Petri Dish, is at www.heraldnet.com. Contact him at 360-352-8623 or jcornfield@heraldnet.com.

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