A Democratic state senator’s errant email is shedding light on new taxes that she and her colleagues may pursue in 2025 as well as a strategy to sell them to the public.
Sen. Noel Frame, D-Seattle, sent the missive last Friday as a follow-up to discussion during a Washington state Senate Democratic Caucus retreat. But she inadvertently blasted it out to every Republican senator too.
You can predict what happened next.
Her email and attached PowerPoint presentation found their way onto social media. A furor followed.
Podcaster Brandi Kruse, a former television journalist, led the way, calling the materials “worse than getting a lump of coal in your stocking.”
“Probably the worst email and ideas in state history,” wrote Rep. Travis Couture, R-Allyn, on X. He will be the lead Republican on the House Appropriations Committee next session.
Frame on Monday described the email mixup as a “very simple error.”
She said her presentation was intended as an “education exercise” for her Democratic colleagues. With the state facing a multi-billion dollar shortfall, she said her role as vice chair of finance on the Senate Ways and Means Committee is to explore tax options while others try to identify savings.
“I wanted to get the conversation started early. Not this early. Now, every legislator is better prepared,” she said
On the list
Frame’s email says the quiet part out loud.
House Speaker Laurie Jinkins and Senate Majority Leader Jamie Pedersen have said voters’ preserving of the capital gains tax in the November election is a sign they’re comfortable with requiring super-wealthy individuals and large businesses to pay a little more.
And Democratic budget writers in the two chambers have already indicated that they plan to consider all revenue options to erase a shortfall estimated between $12 billion and $16 billion over the next four-and-a-half fiscal years.
They’ve just not itemized tax policies in the manner Frame did.
For example, there have been private conversations on attempting a statewide version of Seattle’s JumpStart tax levied on companies with large payrolls and high-paid employees. Frame puts it atop her list.
The idea is employers would pay a tax on the total compensation paid to employees making more than $168,600 annually. It would affect companies with an annual payroll of $8 million or more in Washington.
A “wealth tax” is on her list as well. Last year, she proposed a 1% levy on intangible assets above $250 million such as cash, bonds and stocks. Gov. Jay Inslee last week called for a similar tax on wealth above $100 million. Frame’s PowerPoint includes a guesstimate of what might be raised if the threshold is lowered to $50 million.
In addition, Frame suggests the Democratic majorities in the House and Senate could make another run at a 1% real estate transfer tax on any portion of property sales above $3.025 million. That proposal didn’t reach the finish line last session.
Her roster includes a 1% surcharge on taxes paid by the state’s largest corporations, an excise tax on guns and ammunition sales, a lift of the 1% cap on annual property tax increases, and a sales tax on self-storage unit rentals.
“We can fund world-class schools, affordable housing, and more by making the wealthy few pay what they owe,” reads the PowerPoint. “We have to identify the villain and the problem blocking our progress and how we can take action to solve the issue.”
‘Frame’s viewpoint’
Pedersen said Monday he doesn’t think it’s “necessarily a bad thing” the email got out.
Democrats are trying to be transparent on the pluses and minuses of different revenue options, he said, adding that there will be months of discussion “before we get to the answer.”
Even so, Pedersen distanced himself from the content.
“The PowerPoint contained language that Sen. Frame was trying to sell the caucus on and I’ll say that reflects Sen. Frame’s viewpoint, and that’s not necessarily the viewpoint of any other member,” he said.
Frame also outlined tax relief ideas such as a renters’ credit and a property tax exemption for one’s primary residence. A margin tax for businesses is on the list too. This would allow a company to choose a major deduction — like the cost of labor — before tax is calculated on its gross receipts.
In her email, Frame invited her Democratic colleagues to reach out if they had interest in sponsoring a revenue bill.
“Let’s spread that tax policy love around! 😊,” she wrote.
Here are the 2025 Revenue Discussion slides
Here is the 2025 SDC revenue policy handout
— By Jerry Cornfield, Washington State Standard
Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.
Why such a snarky tone? Mr. Cornfield may not like the ideas presented in the email, but I don’t see anything insidious or malevolent in them, and surely he knows that legislators discuss alternatives before formally proposing policies.
Wealth tax is an unconstitutional taking of property. It cannot be done in any fair manner. Who is going to value anyone’s wealth? Stocks go up and down as do property values. Just more “soak the rich” BS from Democrats. Raising real estate transfer taxes and property taxes will affect all, not just the rich. Why not try to first figure out how to live within existing means? For Democrats there is never enough money they can extract from citizens. Always will want more and more.
Interesting you mention property taxes in your complaint about the rich getting soaked. The Edmonds portion of county property taxes will at least double and probably more in the next two years. So it’s perfectly okay with you to soak the middle class out of their homes and increase non owners rent ; but we must protect the rich at all costs. This attitude plus spending tons of money on what we don’t need, while letting what we do need slide, is the crux of why we are where we are. Both group think political party extremes are slowly strangling most of us and have us at each other’s throats. Only the politicians ever win this sad game.
I don’t get what the issue is here. Anyone who pays attention to the legislature in Washington state could have predicted all of these talking points, and frankly I am happy to see them. Lets make the haves support the have nots. If your business has a payroll north of $8 million then you are doing pretty good for yourself and can afford to pay more in taxes.
It’s time lawmakers are required to own or operate a business. Payroll is not a measure of profitability. WA ranks no. 1 in US for 1st yr. business failures, ST has countless reports on the struggles small, medium size business face in Seattle. Boeing is in the midst of thousands of layoffs, all the major tech companies have laid off tens of thousands in the last few years.
Does anyone stop and ask the outcome of programs funded by these taxes? In 2018 alone, Seattle, KC dropped $1B on homelessness, homelessness skyrocketed in the next 5 years. How about the $645M covid funds stolen by fraudsters. Or the additional millions spent on Seattle School districts, now 1/4 of Seattle Students are enrolled in private education. How about that State Auditor report, wow!
Everyday we’re reminded of the housing affordability crisis, how is increasing property tax from 1% to 3% going to help this crisis? We just saw residents of Mukilteo, Edmonds, Marysville & Snohomish County fight off and won numerous local tax increases this year alone.
Business will continue to layoff, relocate & pass the increased costs off to consumers. These are ‘feel good’ taxes, thankfully our new Governor on King5 suggested he’s not sold on tax increases. Not opposed to taxes, but people need a break & some accountability.
https://www.seattletimes.com/seattle-news/data/seattle-private-school-enrollment-spikes-ranks-no-2-among-big-cities/
https://www.nbcrightnow.com/news/report-washington-leads-the-nation-in-small-business-failures/article_9ed0b150-0958-11ef-8fa9-63e6b28deac9.html
https://myedmondsnews.com/2024/11/commentary-eliminating-wasteful-spending-can-protect-taxpayers-and-essential-services/
https://lynnwoodtimes.com/2024/11/13/property-tax-2/
Correction above: Everett, not Edmonds voters.
No news here. There are three things that are inevitable: change, death, and Democrats wanting to raise taxes.
To the inevitability list, add Republicans wanting to cut taxes and services, and falling back on simplistic generalities. Or are both parties imperfect? In the end, we must decide what we want, and need, and pay for it. If we are going to generalize, It seems to fallible me that Dems are just a bit better at recognizing needs and trying to pay for them. Either way, on a national level, I fail to see how a cabinet made up almost exclusively of billionaires has much contact with, or sympathy for, the real world we live in.
This comment will seem off subject but I think it might help us understand our situation better. Mr. Bond says it’s okay and maybe even good to tax high income people more than the rest of us and Mr. Drechsler lays the whole problem of high taxes in general at the foot of the Democratic Party. Looking at the National political situation, the Democrats just spent millions of tax dollars on a fruitless attempt to prove that Trump tried to overthrow the Constitutional government on Jan. 6th 2021. Now the Republicans are going to spend millions more of tax dollars trying to prove that people (Dem.s and a couple rebel Republicans) committed treason and should go to jail for being biased against the former President who is now President again. This is tax money just down the drain that could have been used to reduce the national debt. or shore up social security, but it has just evaporated into useless spending to prove useless points. At the state and local level we waste millions in tax money on litigations over the environment, homelessness, climate change solutions and whether or not legislation is Constitutional. It’s the party system itself that wastes all the tax money; they are both guilty as charged and costing us a fortune in graft, waste and incompetence.
I’ve mentioned this before but it’s worth repeating I think. Steve Forbes of Fortune Magazine (not exactly a flaming Liberal publication) once suggested that, nationally, we should go to a flat across the board 15% income tax as the only fair system there could be. Everyone pays the same % with no favoritism or protection for anyone or any type of income. He got shot down like a rocket over Israel by his own Conservative thinking Pals. Why? Because tax loop holes are the invention of the ultra wealthy to pay virtually no taxes or the bare minimum if at all possible.