WA State Adopts Transgender Bathroom & Locker Room Policies

The day after Christmas, the Washington State Human Rights Commission has adopted rules which allow transgender individuals to use opposite sex bathrooms. As reported by The Daily Signal the rules "make it illegal for business owners to limit sex-specific facilities (such as bathrooms, showers, and locker rooms) to persons with the anatomical parts of one sex." The article goes on: "The rules, which a state legislator told The Daily Signal took effect on Dec. 26, apply to businesses with eight or more employees. They also dictate that schools should "allow students to use the restroom that is consistent with their gender identity" and in most cases, give transgender students "access to the locker room that corresponds to their gender identity."

For some reason, the Human Rights Commission has not yet posted the final rules.

Idaho Rental Costs

The National Low Income Housing Coalition has produced a nationwide report analyzing and comparing the cost of rent to wages. The Idaho State highlights are below.

Statewide:

• $13.56: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 75: Work hours per week at minimum wage to afford Rent (FMR).
• 1.9: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $705.00
• $2,351.00: Monthly ($28,214.00 annually) income necessary for FMR to be affordable.

Latah County:

• $12.88: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 1.8: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $670.00
• $2,233.33: Monthly ($26,800.00 annually) income necessary for FMR to be affordable.

Fair Market Rent (including utilities) is the cost for a two-bedroom apartment, i.e. $705.00 statewide and $670.00 in Latah County.

Affordability is defined as the ability of a renter to pay no more than 30% of its income on housing (including utilities), this is the federal standard for affordability.

Washington State Rental Cost Stats Look Grim.

The National Low Income Housing Coalition has produced a nationwide report analyzing and comparing the cost of rent to wages. The Washington State highlights are below.

Statewide:

• $21.69: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 92: Work hours per week at minimum wage to afford Rent (FMR).
• 2.3: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $1,128.00
• $3,760.00: Monthly ($45,119.00 annually) income necessary for FMR to be affordable.

Wenatchee & East Wenatchee Metropolitan Area

• $14.65: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 1.5: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $762.00
• $2,540.00: Monthly ($30,480.00 annually) income necessary for FMR to be affordable.

Fair Market Rent (including utilities) is the cost for a two-bedroom apartment, i.e. $1,128.00 statewide and $762.00 in Wenatchee.

Affordability is defined as the ability of a renter to pay no more than 30% of its income on housing (including utilities), this is the federal standard for affordability.

2016 Washington Health Insurance Premiums to increase by 15.2%

The Washington Policy Center reports that in 2016, Washington health insurance premiums will be on the rise. WPC reports that on average, premiums will rise by 15.2%, with increases reported ranging from 10.4% increase to 49.6%.

This applies to plans that are Obamacare compliant and purchased through the exchange.  

Dr. Stark reasons that these companies are raising premiums because now they have a better understanding of the costs of Obamacare.

You can see if your health insurance plan is included by clicking here.

Gov. Inslee Proposes a Washington State Capital Gain Tax

Governor Inslee's 2015-17 budget has an anticipated deficit of just under $2 Billion (expected revenue of $37.1B, Inslee budget of $39B in expenditures).

To compensate, Governor Inslee proposes several tax increases including a brand new 7% Washington State Capital Gains Tax.

This is a brand new income tax, currently Washington State does not have any form of income tax. As previously discussed, Washington State's lack of income taxes has helped to establish its edge over many other states in tax competitiveness. Washington's lack of income tax has helped it achieve the lowest State marginal tax rate for pass-through entities, gain 11^th place on the 2015 State Business Tax Climate Index, and rank 4^th among the states for mature retail stores & call centers.

Inslee's Capital Gains Tax Proposal Key Facts (drawn from FAQ on HB 1484/SB 5699)

• Capital Gain Rate of 7%
• Applies to Long Term capital gain income above $25,000 (single) $50,000 for married couples. Generally, based on gains as reported on federal tax returns.
• Exemptions:
  • Retirement Account gains
  • Family Home sale exemption (only if (1) IRC § 121 otherwise applies or (2) the home has been owned for 20 years and used as personal residence for at least 10 years).
  • Agriculture Property
    • Exemption only applies to sale of "cattle, horses or breeding livestock" (if more than 50% of taxpayers gross income is from farming/ranching)
    • Exemption for sale of agricultural land: exemption only applies to land held for at least 10 years (assuming taxpayer has "regular, continuous and substantial involvement in the operation of the agricultural land")
  • Timber
• Credits
  • Individual can take a credit for capital gains taxes paid in other states for gains subject to the Washington Tax.
  • No credit for federal capital gains taxes paid.

Conclusions

Imposing any form of income tax will bring Washington State down in its tax competitiveness with other states. As reported by the Washington Policy Center, capital gains tax is an extremely volatile revenue stream for governments and Governor Inslee proposes to allocate these revenues solely to education spending. Additionally, the Washington Policy Center questions the constitutionality of Governor Inslee's proposal and cites to former Washington State Supreme Court Justice Phil Talmadge's 2010 legal analysis of Initiative 1098 (2010 Initiative to impose and income tax, that initiative ultimately failed 64.15% against, 35.85% in favor).