October 22, 2006

EDITORIAL:  Just Vote 'No' on the Initiatives

Complexities are abundant in Initiatives 920, 933 and 937 on November’s general election ballot.

But for voters, the answer is simple: Just say no.

[Note:  the webmaster is not reprinting here the sections of this editorial dealing with Initiatives 933 and 937 in order to focus on what the editorial board has to say about I-920.  Click here for the complete editorial.]

Among the three initiatives, the most contentious for our board members was I-920, which would repeal the state’s estate tax. Under existing law, estates are taxed 10 percent to 19 percent on assets above $2 million for individuals, or $4 million for couples. That is, the tax is levied not on the first $2 million or $4 million, but only on amounts above that.

Board members opposing the tax it felt it was arbitrary and discriminatory. “Why should a family that makes the money not be allowed to leave it to their heirs without the government taxing it when they die?” asked one member.

Supporters of the tax felt it was appropriate and for a good cause. As one board member put it, “Because we don’t have an income tax, the state hasn’t already taxed this money, it applies to fewer than 200 estates out of all the people who die each year, and the money is earmarked specifically for education programs that deserve to be funded.”

By a narrow margin, our editorial board voted “no” on Initiative 920; we urge voters to do the same.