While the pandemic has fueled soaring profits for the country's richest, it has also exposed growing income and wealth inequality in the United States.

Progressive groups are optimistic Washington state could tackle the issue through its tax code. Legislation to impose a wealth tax did not pass in Olympia this year, but will likely be back in 2023.

Carolyn Brotherton, policy associate at the Economic Opportunity Institute, said the state has the most regressive tax system in the country.

"A state wealth tax is one way that we can start addressing this inequality and put resources back into the communities that need it the most," Brotherton contended. "Rather than letting this wealth just grow and grow and grow into the hands of the very few at the very top of the wealth distribution."

Opponents of the wealth tax say it is essentially a graduated income tax, which is unconstitutional in Washington state.

However, Brotherton does not believe it to be the case. The legislation presented this year would exempt everyone with less than a billion dollars in assets. Brotherton argued in essence, it would bring uniformity to the tax code.

"The ultrawealthy who grow their wealth by owning things like stocks and bonds will pay a 1% property tax on the privilege of owning that property, similar to how homeowners currently pay a 1% property tax on the privilege of owning real property in our state," Brotherton outlined.

The state Department of Revenue estimates the tax would affect fewer than 100 people in Washington state. A fiscal analysis found it would raise about $2.5 billion a year.

There have been other recent attempts to change taxes in Washington. In 2021, lawmakers passed a 7% capital gains tax on the sale of stocks, bonds or other assets worth more than $250,000. It's been challenged in court and signatures are being collected for a measure to repeal the tax in November if voters approve.

Brotherton emphasized it's repeal would hurt communities, noting Washington's unfair tax code means more than numbers on paper.

"What it means is that we have austerity baked into our system so that we're not fully funding the things that we know our communities need," Brotherton asserted. "Such as K-12 education, such as climate resilience, such as housing, such as public health, and so on and so forth."

Arkansas is set to reduce income tax rates for individuals and corporations starting next year.

Opportunity Arkansas is advocating for the elimination of the state income tax altogether.

Nicholas Horton, founder and CEO of the group, said the new top tax rate of 4.4% still penalizes people for earning more money. Horton believes eliminating the state income tax would help Arkansans keep more of their income.

"Reality is, we've been chipping away at the state income tax pretty aggressively," Horton acknowledged. "And we talked about this in the report. What's been happening is, revenue has actually gone up, because people have more money in their pockets to spend at local small businesses, all across the Arkansas economy."

Medicaid is the largest single line item in the state budget, consuming more than one in every four dollars the state spends. Horton said Medicaid spending is key to addressing Arkansas' budget gap. He added the state's income tax generates only about $3 billion a year, while the state spends close to $35 billion.

Horton pointed out in recent years, Arkansas has lowered its income tax rate from nearly 7% to 4.4%. He explained a report from his organization outlines strategies state policymakers can implement to accelerate the state income tax elimination.

"We worked a lot with state policymakers in the Legislature and the executive branch," Horton recounted. "Our objective was to really present a menu of options, and start a more detailed conversation about how we get to zero."

Horton added Texas and Tennessee have eliminated the personal state income tax, and thinks following suit would be "transformative" for Arkansans.


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Alabama Arise, a statewide advocacy group, is fighting for marginalized communities affected by poverty.

The organization recently unveiled its 2024 policy priorities, highlighting the importance of expanding Medicaid and ending the state sales tax on groceries to improve residents' overall well-being.

Robyn Hyden, executive director of the group, believes addressing the issues will create lasting effects on communities and improve communication with legislators.

"Some people feel a sense of powerlessness, a feeling that our political systems are not set up to listen to us or respond to our needs, the needs of everyday folks," Hyden explained. "We really work hard to refute that by showing that regular everyday citizens do have power in raising their voices together. "

She noted Arise's policy goals also include increasing human service budgets, securing education funds, preserving voting rights through no-excuse early voting and easier rights restoration. The organization also aims to tackle policies aimed at improving criminal justice outcomes, maternal and infant care and public transportation funding, and requiring unanimous jury decisions in death-penalty cases.

Hyden pointed out change does not happen quickly and takes everyone working together. She emphasized some ways they plan to work to bring the policies to life are through policy analysis, producing advocacy materials such as fact sheets and reports to spread information, and empowering regular citizens to engage with local lawmakers in their districts.

"We always want to go into the legislative session having fully educated lawmakers about how important it is to address poverty in their district and how we think they could do that," Hyden stressed. "We never want to hear a lawmaker stand up and say, 'Hey, nobody in my district has talked to me about this.'"

Alabama Arise achieved partial success this year when the state sales tax on groceries was unanimously reduced by half. However, she admitted more can be done and said they will continue to fight for the complete removal of this tax burden on low-income families. She added they will be challenging state income tax deductions currently benefiting the wealthiest households.

A group of veterans is touting the national security benefits of the Inflation Reduction Act.

The organization Elected Officials to Protect America said the law, passed by Congress in 2022, will decrease the country's dependence on foreign sources of energy with a $370 billion investment in clean energy.

Beaverton Mayor Lacey Beaty, an Army veteran, said in the wake of the region's devastating wildfires and the heat dome, she helped push for protections for renters in Oregon.

"While I'm very proud of that legislation, I'm very proud that the governor signed it and I was very proud to build the coalition to do it, imagine what a tenacious mayor could have done if I wasn't focusing on climate-related emergencies," Beaty pointed out. "We could have been building more pipes in schools and infrastructure and bridges."

Beaty stressed the recent disasters in the state have underscored the importance of taking action on climate change.

Alex Cornell du Houx, president and co-founder of Elected Officials to Protect America, a former marine and Maine state representative, pointed to the conflict in Ukraine as evidence of the importance of energy independence.

"With the Inflation Reduction Act, it is part of the solution to decouple ourselves from this dependency on the source of energy in which autocratic nations primarily control," du Houx explained. "That's the exciting thing about it. It's an amazing solution that's really tangible and a historic investment."

Beaty contends mayors like her will ensure funds from the Inflation Reduction Act go to the places doing the most good to fight climate change.

"We can be trusted by the president to deliver on the ground," Beaty emphasized. "That's why we see so many mayors excited about the Inflation Reduction Act, because we know how to put money to work right away."


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