Poor Taxed More Than Rich In Puget Sound: Study

SEATTLE, WA - If you make more than $25,000 per year, count yourself lucky - you're probably paying less in taxes than people who make less than that. But if you make more than $250,000, you're paying MUCH less in taxes as a share of income than your Puget Sound neighbors.

That's according to a new study by the Economic Opportunity Institute. Researchers looked at tax structures in 15 cities across Washington, eight of which are in the Puget Sound area, to see how much residents paid in taxes as a share of their income.

The study reinforces something we already know: Washington has the most regressive tax structure in the U.S., and it's only getting worse.

Cities across the state are struggling to pay for basic services like transportation, parks, and education. Those cities often turn to tax levies to bridge the gap. But poor people end up paying a bigger share of their income toward those taxes than the rich because they are regressive - that is, everyone pays the same tax rate.

The city with the most regressive tax structure in the state is, of course, Seattle. A person making under $25,000 pays 17 percent of their income toward taxes. A person making $250,000 pays just 4.4 percent of their income.

Seattle has an effective sales tax rate of 10.1 percent (and so does Tacoma), which is one of the highest in the state. The Snohomish County cities of Mukilteo, Lynnwood, and Mill Creek have the highest at 10.3 percent, according to the state Department of Revenue.

Aside from sales tax, the poor struggle to pay higher car tabs - and if they own a home, rising property taxes.

Here's the Economic Opportunity Institute's breakdown of who pays the most in taxes:

File photo by Neal McNamara/Patch