Important Initiative Info

Although NMTA generally refrains from taking positions on ballot measures, the NMTA government affairs committee thought it would be wise to call to your attention one of the issues affecting small businesses that is presented by the proposal to establish a high-earners state income tax (Initiative 1098). This element of Initiative 1098 is one of the reasons the National Federation of Independent Business and the Association of Washington Business have endorsed a “no” vote on the measure.

Because of the unique tax reporting of income on the owner’s individual tax return by Subchapter S corporations, Limited Liability Companies and partnerships, many small businesses using one of these forms will be required to pay the new tax on high-earners, regardless of the profitability of the business. Opponents of Initiative 1098 estimate “as many as half to two-thirds of those who will pay the new tax rely on income from these types of businesses.”

You can read more about the Initiative 1098 at: Yes on 1098 http://www.yeson1098.com/ and also Defeat 1098 http://www.defeat1098.com/

In addition, you might find a recent Seattle Times guest column by former Washington governor and U.S. Senator Dan Evans of interest (“Why Gov. Dan Evans is voting again I-1098”): http://seattletimes.nwsource.com/html/opinion/2012990337_guest26evans.html