SEATTLE - Who really pays for the services Washington state and its cities provide? A new analysis from the Economic Opportunity Institute investigates the state's tax system in 15 cities and finds low- and middle-income households are paying an oversized share of their earnings.

Previous studies have found the Evergreen State has the most regressive tax system in the country. Report author Matthew Caruchet, the institute's communications director, said increasing income inequality is compounding the problem, pushing this regressive tax structure to a breaking point. He said the burden isn't evenly distributed.

"People in Washington, and especially Seattle, feel like they are very heavily taxed, and that is true if they are working class or middle class," he said. "What they don't understand is that wealthy people are extremely undertaxed. Just because working-class people are paying a lot doesn't mean that everyone else is."

The report said Seattle has the most regressive tax structure of any Washington city. That puts the growing city in a unique position, given that it needs more revenue to invest in its increasing need for public services. Supporters of lower tax rates on wealthy residents have said it promotes job creation, although the report found no correlation between job growth and cities' tax structures.

In Seattle, the effective tax rate for a household making $25,000 is 17 percent. For a $250,000 household, it's about 4.5 percent. In Spokane, the least regressive of the cities analyzed, a $25,000 household pays about 10.5 percent and a $250,000 household pays about 3.5 percent. Caruchet said cities have suffered partially because of their reliance on the same taxation methods that the state employs, which is usually increasing property, sales and automobile taxes.

"Seattle and other cities don't really have any progressive tools," he said, "so that whenever they have to raise revenue, they're increasing regressive taxes, which are increasing the tax obligations of the middle class and working class at higher rates."

Seattle has tried to go its own way with a more progressive structure. Last summer, the city council unanimously approved a 2.25 percent tax on individuals making more than $250,000 and couples with a combined income of $500,000. A King County Superior Court judge ruled against the ordinance in November, saying it violates a 1930s state Supreme Court decision banning progressive income taxes. The city has appealed the ruling.

The report is online at eoionline.org.


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A renewed lifeline for small business owners still struggling after the pandemic - as the California Rebuilding Fund has announced it is making an additional $15 million available to fund fixed-rate low-interest loans.

The fund had almost run dry after making $80 million in loans over the past 2 years. Tony Beaman, president of Oakland-based Hacking Solutions, said the program provided his company much-needed capital in the first round.

"It was completely a lifeblood for our company," said Beaman. "We've grown significantly, we've been able to hire. We brought on several new clients. It set us up to really springboard our growth going forward."

To qualify, a company must be based in the Golden State, have fewer than 50 full-time employees, and be in business for more than a year. So far, the program has helped more than 1,300 small businesses.

To apply, go to caloanfund.org.

Luz Urrutia is CEO of Accion Opportunity Fund - a community development financial institution. She said the fund is expecting a stampede of applications, so business owners need to act fast.

"The small businesses that we're talking about generally don't get access to capital from the mainstream financial system," said Urrutia. "And so they're faced with having to access very high-cost loans. And this program is specifically focused on helping California businesses rebuild after COVID."

The $15 million to revitalize the California Rebuilding Fund came from the Santa Clara County Board of Supervisors, JPMorgan Chase, and the David and Lucile Packard Foundation.

California is going to need tens of thousands of workers over the next six years as we continue to build the broadband network to bring high-speed internet to underserved areas.

Now, the feds have awarded $5.8 million to the Communications Workers of America to supercharge its workforce training program.

Frank Arce, vice president of Communications Workers of America District 9, which encompasses California, Nevada, Hawaii and Guam, said the union is partnering with the Chabot-Las Positas Community College District in the Bay Area to expand its apprenticeship program.

"We're planning on focusing on underserved communities," Arce explained. "Really making sure it's a locally based workforce, people of color, women, veterans, and young people."

The plan is to open three more paid apprenticeship training programs over the next few years in the Fresno, Chico and Los Angeles areas. The state is set to allocate more than $5 billion to extend high speed internet in rural areas, and the Infrastructure Act will send hundreds of millions in federal funds to bolster the effort.

Arce pointed out the grant also will allow the union to partner with employers to bolster working families.

"It's a great opportunity for people to get some skills and set themselves into a solid middle-class job," Arce asserted. "We're taking advantage of this opportunity that we're building our infrastructure in the country to see if we can get some Californians out to work."

Arce noted in the past, unscrupulous subcontractors working for telecom companies have cut corners and treated workers poorly. But he added the publicly-funded program will raise the standards to require high-quality materials, workmanship and employee benefits.


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The largest nurses strike in U.S. history started yesterday in Minnesota. Those walking the picket lines said they want the public to know it is not just about higher wages, arguing hospital executives are putting profits first.

The three-day walkout includes 15,000 nurses from more than a dozen hospitals in the Twin Cities and Duluth. Union leaders say while they are seeking higher wages, they stressed structural issues related to staffing make it harder to provide adequate care for patients.

Brittany Livaccari, an emergency room nurse at United Hospital in St. Paul, amplified the argument when speaking to reporters.

"Staffing shortages and crises within the hospital absolutely did not start with this pandemic," Livaccari asserted. "It started with lean management and staffing cuts. The pandemic just shed light on it and made it worse."

She and other union members stressed they want to have more of a say in how hospitals are staffed. The Twin Cities Hospital Group criticized the nurses for choosing to strike before exhausting all negotiating efforts. It added several hospitals have reached tentative agreements on revised workplace safety measures. Contract talks have been dragging on for several months.

Rep. Tina Liebling, DFL-Rochester, chair of the House Health, Finance and Policy Committee, said the entire state needs to know each hospital needs skilled nurses to care for people's families, friends and neighbors. But she feels the message is not getting through to administrators.

"Hospitals without nurses are just buildings," Liebling emphasized. "We all know that."

The Morning Consult firm recently reported 18% of American health care workers have quit their jobs during the pandemic, while another 12% have been laid off.

Meanwhile, in Minnesota, contingency plans were put in place to avoid care disruptions during the strike. However, some patients might see scheduling changes for non-urgent care.