The public vote on Initiative 1098 is rapidly approaching us here in Washington State. This is likely the most dangerous initiative I've ever had the opportunity to vote against, and I hope to urge all Washington voters who read these words to do the same.

I-1098 would quite simply create an income tax in our state. As those who live here know Washington State has historically been without an income tax. What folks may not know is that our lack of an income tax is one of the prime movers of our economy, the prime reason why our state is constantly rated as a good place to start or move a business.

As the Seattle Times has pointed out:
"I-1098 also takes away the most important tax-based advantage Washington has in attracting business and jobs here: our lack of a state income tax. This state needs that advantage..."

As the Wall Street Journal has pointed out:
"Washington's lack of an income tax is among its main comparative advantages in luring those top 3%, [of wage earners] along with their businesses and jobs, into the state. In addition to Washington, the states without an income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Combined they had an average 18.2% growth rate in jobs over the past decade, more than twice the 8.4% job growth in the nine states with the highest income tax rates, according to a new report based on Commerce Department data by the American Legislative Exchange Council."

Indeed, if I-1098 passes Washington will jump immediately from having no income tax to having the eighth highest income tax rate in the country. That would be devastating to our economy and destroy job creation, locking us into the recession for as far as the eye can see.

The money and power of our state's most famous father and son duo are pushing the campaign for I-1098, Bill Gates Senior and Junior. With that kind of backing initiative supporters are able to push half-truths about the measures impact on to the electorate. Those half-truths are numerous, and should be examined.

Half-truth #1: I-1098 provides dedicated funds for education and health care.

Through the years our state has created a massive number of 'dedicated funds' meant to fund specific budget items. Dedicated funds are not a constraint on the legislature that gleefully raids such funds, dumps them into the general fund, and spends them at will. Remember the education initiatives passed just a few years ago that were ignored by the legislature? Remember the dedicated tobacco prevention funds created with the tobacco settlement then Attorney General Gregoire won for our state, funds 'securitized' then spent on a myriad of things other than tobacco prevention? Remember the NOVA funds raided just last year and given to State Parks? Dedicated Funds are a useful lie told by the legislature, and initiative backers when such a lie serves their purposes.

Half-truth #2: I-1098 will cut taxes for the middle class.

The overall fiscal impact of I-1098 is a 1.5 billion dollar tax increase in 2012 and 2.5 billion a year by 2016. A tax increase in the billions of dollars on Washington citizens is not a tax cut. Indeed small businesses will be hit with a massive new tax, personal state income tax paid on profits.

Half-truth #3: Property and B&O taxes will be cut if I-1098 passes.

That may be true for two years, but after that, all bets are off. By law the legislature only has to respect an initiative for two years. After that a simple majority of the legislature can change it at will. Ask yourself before you vote, do you truly believe that two short years from now our legislature will not bring property and B&O taxes right back up to their previous levels? Remember that they raised taxes by over 800 million dollars just this year. Remember your $30 car tabs? Remember your 'public vote' for all tax increases? Oh yeah, the legislature just got rid of those constraints two years after they passed.

Half-truth #4: Income tax rates imposed under I-1098 cannot be increased without a vote of the people.

This one is a huge whopper of a half-truth. Enjoy trying to stomach it. The fact is that it is only true for two short years. After that a simple majority of the legislature can change the initiative, and then set whatever rates they desire, on whomever they desire. Remember before you vote that when the federal income tax was first imposed it was sold to the American people as a 'tax on the rich' only to pay for World War 1. Funny how it's now a tax on everyone, and I think that we paid for World War 1 a very, very long time ago. Make no mistake about it, I-1098 will give our legislature the power to place a tax on every person's income two short years from now. A simple majority of the legislature.

Half-truth #5: I'll quote straight from the Voter's Guide to prove their lie: "Middle class families pay four times the tax rate of the rich."

No. We all pay the same rate of taxes, regardless of our income based upon where we live and where we shop. Sales tax rates are the same within the City of Seattle for everyone. Bill Gates Jr. pays the exact same sales tax rate on his cup of Starbucks as his lowest paid employee. He does of course pay many more dollars in tax, because his resources allow him to buy much more. Likewise he pays the exact same property tax rate as his next-door neighbor. He pays more dollars because his house is worth more money. The tax rates in Washington are exactly the same; dollar values change from person to person because the rich own more and spend more than the poor. The rich are paying their fair share, as are the poor. Washington's tax system is remarkably fair in that each individual ends up paying according to his or her means.

Half-truth #6: Rich people are fighting I-1098.

Absurd. It is not possible to be any richer than the Gates boys. They are the Rich People in our state and indeed the world over. They are not fighting I-1098, they are pushing it.

In these tough economic times, if our state is to recover, politicians must be forced to reign in governmental spending and growth. They must be forced to prioritize spending, not increase taxes. If our state government is given this new tax, we will all be paying it two short years from now, and our economy will loose all hope at recovery.

I have an idea:

If the Gates boys, father and son, are so worried that they aren't paying enough in taxes, how about instead of trying to destroy everyone else's lives they run a new initiative next year. An initiative to nationalize Microsoft and their other holdings. Microsoft's cash reserves alone are large enough to stabilize our state government's budget as far as the eye can see. Perhaps these titans of the legal and tech world will feel better about their contributions to society if they are without wealth. Perhaps they would sleep better at night that way, knowing that they had finally paid their fair share.

Ah, wait a minute. I forgot. Folks like the founder of Microsoft have loads of cash to spend on lawyers who can set up lots and lots of tax shelters. Maybe they figured it out in advance; maybe I-1098 will just hurt the sorta rich folks and leave the incomes of billionaires intact.

If you have read this far and live in Washington, let me urge you, vote well, or be saddled with your very own 9% income tax rate just a few short years from now.