Initiative 920
Encyclopedia
Initiative 920 was a highly controversial campaign to repeal the estate tax
in the U.S. state
of Washington. Washington state law directs that revenue
s collected from the estate tax be placed into the Education Legacy Trust account, which funds financial aid for higher education
. The initiative failed, with 33.54 percent voting for and 66.46 percent against.
. In 1978, Falk co-chaired Save Our Moral Ethics, an unsuccessful campaign to repeal a law barring housing and employment discrimination
against gays and lesbians.
Supporters of I-920 claim the estate tax is an unfair burden on small business
. They claim that if small businesses leave Washington, support for local schools will be eroded. They also contend that the 2005 legislature’s decision to renew the estate tax contradicted I-402, which was passed in 1981.
Groups supporting I-920 include:
, especially for the poor. Second, critics point out that the tax is graduated and therefore only impacts those most able to pay. They argue that the proponents of I-920 have used the rhetoric of small business interests to create tax break
s for the extremely wealthy. Family farms, for example, are completely exempt from the estate tax. Last year, the Washington Estate Tax affected only 250 of the wealthiest estates.
Groups opposing I-920 include:
Inheritance tax
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
in the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Washington. Washington state law directs that revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s collected from the estate tax be placed into the Education Legacy Trust account, which funds financial aid for higher education
Higher education
Higher, post-secondary, tertiary, or third level education refers to the stage of learning that occurs at universities, academies, colleges, seminaries, and institutes of technology...
. The initiative failed, with 33.54 percent voting for and 66.46 percent against.
Supporters
The campaign to get I-920 on the ballot was primarily bankrolled by Martin Selig, a Seattle skyscraper developer, and Dennis Falk, a wealthy former Seattle police officer. Falk’s involvement has been particularly controversial. Falk leads the John Birch SocietyJohn Birch Society
The John Birch Society is an American political advocacy group that supports anti-communism, limited government, a Constitutional Republic and personal freedom. It has been described as radical right-wing....
. In 1978, Falk co-chaired Save Our Moral Ethics, an unsuccessful campaign to repeal a law barring housing and employment discrimination
Discrimination
Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...
against gays and lesbians.
Supporters of I-920 claim the estate tax is an unfair burden on small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
. They claim that if small businesses leave Washington, support for local schools will be eroded. They also contend that the 2005 legislature’s decision to renew the estate tax contradicted I-402, which was passed in 1981.
Groups supporting I-920 include:
- Associated Builders and Contractors of Western Washington
- Association of Washington Business (AWB)
- CentraliaCentralia, WashingtonCentralia is a city in Lewis County, Washington, United States. The population was 16,336 at the 2010 census.-History:In pioneer days, Centralia was the halfway stopover point for stagecoaches operating between the Columbia River and Seattle. In 1850, J. G. Cochran came from Missouri with his...
-ChehalisChehalisChehalis, in the language of the U.S. Native American tribe of the same name, means "sand". In the language of the Chehalis First Nation of British Columbia, Canada, the term is Sts'Ailes, meaning "beating heart".It can refer to:* Chehalis, Washington...
Chamber of CommerceChamber of commerceA chamber of commerce is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community... - D.A. Burns & Sons
- Frank Gurney, Inc.
- GM Nameplate
- Greater Seattle Chamber of Commerce
Opponents
Criticism of I-920 has focused on two main points. First, critics argue that the estate tax is the most efficient way to raise revenue for education and that repealing the tax will compromise educational infrastructureInfrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
, especially for the poor. Second, critics point out that the tax is graduated and therefore only impacts those most able to pay. They argue that the proponents of I-920 have used the rhetoric of small business interests to create tax break
Tax break
Tax break is a slang term referring to any item which reduces tax, including any tax exemption, tax deduction, or tax credit. Tax break is also a pejorative term used in the United States to refer to purportedly favorable tax treatment of any class of persons, as in "individuals get a tax break...
s for the extremely wealthy. Family farms, for example, are completely exempt from the estate tax. Last year, the Washington Estate Tax affected only 250 of the wealthiest estates.
Groups opposing I-920 include:
- American Federation of Teachers of Washington
- Children's Alliance
- First Place
- International Union of Operating Engineers — Local 609
- League of Education Voters
- League of Women VotersLeague of Women VotersThe League of Women Voters is an American political organization founded in 1920 by Carrie Chapman Catt during the last meeting of the National American Woman Suffrage Association approximately six months before the Nineteenth Amendment to the United States Constitution gave women the right to vote...
- Lutheran Public Policy Office of Washington State
- Martin Luther King, Jr. County Labor Council, AFL-CIO
- Pierce County Human Services Coalition
- Public School Employees of Washington
- Retired Public Employees Council of Washington
- SEIU #925
- Statewide Poverty Action Network
- Tax Right
- Washington Association of Churches
- Washington Community Action Network
- Washington Education Association
- Washington State Labor Council
- Washington State NOWNational Organization for WomenThe National Organization for Women is the largest feminist organization in the United States. It was founded in 1966 and has a membership of 500,000 contributing members. The organization consists of 550 chapters in all 50 U.S...
- Washington State Parent Teacher Association
- Washington Tax Fairness Coalition