Shocking Tax Plan Leak: Will Washington Democrats Outsmart Voters?

In a stunning turn of events, Washington State Senator Noel Frame, a Democrat from Seattle, mistakenly hit “reply all” on an email that contained a PowerPoint presentation and a memo outlining a bold new tax agenda. This misstep raises a critical question: are Washington voters going to sit quietly while Democrats push through a series of highly controversial, and possibly unconstitutional, tax proposals?

Frame’s leaked email hints at ten tax initiatives that Democrats are likely to introduce in the 2025 legislative session. Some of these ideas are fresh off the drawing board, while others have flopped in the past. Among the most alarming is an employer payroll tax that would target all businesses—not just the big ones—by taxing total compensation, including wages, salaries, and even stock options. Additionally, Democrats plan to impose a 1% wealth tax on financial assets exceeding $50 million, hike the capital gains tax to an eye-watering 9.9%, and increase the property tax levy lid from 1% to 3%. They’re even looking to tax ammunition and firearms at a staggering rate of 11%, alongside turning the rental of storage units into a taxable retail transaction.

Despite the audacity of these proposals, the media has largely turned a blind eye, even as they contradict the very promises Democrats made during the election. It’s worth noting that Washington has enjoyed record revenues in recent years, highlighting that the real issue in Olympia isn’t a shortage of cash—it’s an out-of-control spending problem.

How Will Washington Democrats Spin Their Tax Plans?

The leaked memos reveal a strategy that’s as clever as it is disingenuous. Lawmakers are instructed to create a narrative that frames their tax initiatives as necessary actions against an elusive enemy.

“We need to identify the villain and the issue obstructing our progress, and articulate how we can tackle it,” Frame advised her fellow Democrats.

That villain? The wealthy residents of Washington, whom Democrats claim aren’t paying their “fair share.” Frame’s plan is to craft a narrative that pits the “wealthy few” against the average citizen, claiming they’re shirking their tax responsibilities.

“Despite recent reforms, lower- and middle-income Washingtonians are still paying more in taxes than the wealthiest individuals and biggest corporations,” she asserted, a statement that doesn’t align with reality. For instance, the capital gains tax has already generated about $890 million from around 4,000 wealthy taxpayers, far exceeding initial projections of $500 million. In fact, the wealthy contribute significantly more to the tax pool and receive fewer benefits in return.

The Wealthy as the “Villain”: A Manipulative Strategy

The notion that the wealthy aren’t fulfilling their tax obligations is purely fictional.

Frame specifically instructed her colleagues to avoid phrases like “Tax the rich” or “pay their fair share,” suggesting that such language implies taxes are a form of punishment. Instead, they should assert that the wealthy must “pay what they owe,” creating a narrative that paints high earners as tax evaders, thus making them easy targets for public disdain.

“Be precise about the ‘villain’—mention ‘the wealthy few’ and those who crafted our flawed tax code a century ago,” Frame wrote.

Senator Frame also urged her peers to steer clear of discussing the budget deficit, which ranges from $10-$12 billion—a direct result of their reckless spending despite unprecedented revenue inflows. Instead, the focus should be on how these tax plans will improve the lives of Washingtonians. In essence, they aim to tug at the heartstrings of voters.

Every Washingtonian Will Feel the Impact of These Tax Plans

The idea that these taxes, which Democrats claim are narrowly targeted at the wealthy, won’t affect broader taxpayer bases is absurd.

Capital gains and wealth taxes often deter investment and economic growth, which can lead to job freezes and wage stagnation that disproportionately impact middle- and low-income residents. Moreover, high-net-worth individuals may simply relocate their assets or move out of the state entirely. Recent reports suggest that billionaire Jeff Bezos saved roughly $1 billion in taxes by moving to Florida.

Businesses facing heightened tax burdens invariably pass these costs onto their customers through increased prices or diminished services, which translates to higher living costs for everyone.

Additionally, even progressive figures like Nick Hanauer oppose an unconstitutional wealth tax, arguing that it could drive wealth out of the state. “Even if it overcomes legal challenges, it’s unlikely to generate much revenue,” Hanauer stated, noting that many wealthy individuals he has spoken to are considering leaving Washington entirely.

When the wealthy exit, leaving budgets reliant on their contributions, will the Democrats curb their extravagant spending? Or will they simply turn to the remaining taxpayers for even higher rates?

Are You Aware of the Manipulation at Play?

Washington Democrats seem unfazed by the fact that their tactics for manipulating public opinion regarding higher taxes are well-known. Their nonchalance about the leaked tax plans speaks volumes.

In an ideal world with unbiased local media, this would be a major scandal. But in a state governed by a single political party, journalists often find themselves incentivized to provide glowing coverage, lest they lose access. With the upcoming administration of Governor-elect Bob Ferguson, known for his thin skin, scrutiny may rise.

Many Washington voters unwittingly support the very politicians responsible for the issues they lament—be it the housing crisis, rising homelessness, or increased crime rates. Do they genuinely believe that the wealthy are the real villains? Only time will tell if they come to realize that their own wealth may soon place them in the crosshairs of the tax narrative.

Listen to the show on weekday afternoons from 3-7 p.m. on local radio. Stay informed and subscribe to our podcast. Follow us on social media for the latest updates.

Follow @yourhandle