Letter: Proposed sales tax increase is regressive

Measure 16-8 on the Aug. 2 ballot seeks a two-tenths of 1 percent increase on taxable sales within Kennewick. Proceeds would help expand the Three Rivers Convention Center and construct a new venue for Broadway plays.

Proponents say it is just 2 cents on a $10 purchase. Households with greater spendable income will end up paying more, because they can spend more. But those with less income will be hit harder by this regressive tax.

U.S. Census household data and TRIDEC statistics on income and spending for Kennewick show the 2 cents would equate to about $60 dollars/year/household.

Compare this new tax to what the state allows as a maximum increase in property taxes — $25 as a 1 percent increase on the average homeowner’s $2,500 tax bill in Kennewick.

Clearly, the 0.2 percent increase in sales taxes is far above what the city could reap by increasing property taxes. Remember that when government officials boast about not having raised the property tax levy every year.

Also remember that Measure 16-8 raises taxes only on purchases in Kennewick. This is good news for retailers in Pasco and Richland. Measure 16-8 is just another sneak-a-tax on Tri-Cities residents.

This story was originally published July 21, 2016 at 3:14 AM with the headline "Letter: Proposed sales tax increase is regressive."