Yet, progressive tax rates are considered legal. How is this any different? Via the AP:
A judge ruled Wednesday that a new income tax on wealthy Seattle residents is illegal.
King County Superior Court Judge John Ruhl said in his ruling that the tax is prohibited by state law, agreeing with lawyers in multiple lawsuits challenging the ordinance.
Attorneys for plaintiffs called the ruling a victory.
“The Seattle City Council knew when it first passed this last summer that taxes in this state have to be applied uniformly,” said Tom McCabe, chief executive of the Freedom Foundation, a co-plaintiff in the lawsuit.
The council voted unanimously in July to impose a 2.25 percent tax on the city’s highest earners, saying it wanted to test the legality of an income tax in Washington and open a broader debate about the wealthy paying their fair share in a booming city with an affordable housing crisis.
Under the ordinance, residents would pay a 2.25 percent tax on income in excess of $250,000 for individuals and in excess of $500,000 for married couples who file taxes jointly.