Some call for taxing Seattle's wealthy in case feds pull funding over sanctuary city fight

SEATTLE -- It’s a grass-roots movement to convince the city of Seattle to create a new tax on the wealthy.

The new campaign is called "Trump Proof Seattle."

Supporter say it’s a safeguard in case the federal government decides to pull federal funding from Seattle because of the city’s commitment to stay a sanctuary city for undocumented immigrants.

“The immigrant issue might be the issue of today (but) there will be other issues, threats to federal funding. We need to be more robust,” said Ned Friend, who lives in Seattle's Green Lake neighborhood.

Friend is supporting a suggested tax measure that would directly affect his family and other households making $250,000 or more.

“One of the things we’ve been considering would be a tax on unearned income,” Katie Wilson said.

Wilson, with the group Transit Riders Union, says unearned income means dividends, interest and capital gains.

“We are looking at a tax level of 2.5% on unearned income, an estimate at this moment that would raise about $100 million a year,” Wilson said.

In 2015, the feds gave Seattle more than $80 million and half of that money went to human and social services to address issues like the homeless crisis

The Trump Proof Seattle campaign says the working poor in Seattle making $21,000 or less are paying 16% of their income in taxes while the top 1% making $500,000 or more pay less than 3%.

Some council members appeared in support during the listening session, but even if the city were to pass the measure, lawmakers in Olympia say it’s unconstitutional.

“It’s a moot point anyway because it doesn’t pass the uniformity of taxation clause,” state Sen. Phil Fortunato said.

Fortunato noted that state law prohibits any taxation method that targets specific groups of people. He says if taxes are imposed, it needs to be done at the same rate in a uniform way.

“It’s a graduated income tax where people pay different rates,” Fortunato said.

For supporters, that’s the whole idea and they are willing to take the issue to the state Supreme Court

“We believe the state Supreme Court today has a really high chance of overturning those decisions if it comes before them,” Wilson said.

Fortunato is sponsoring a bill in Olympia that would bar an income tax in the state.

He says citizens of Washington have time and time again voted against an income tax and he will fight for his constituents.

Mayor Ed Murray called the initiative intriguing but due to the expected legal battle ahead he does not feel it's the best measure to address immediate needs in the city.

Murray, however, is in favor of an income tax.