Martin Selig has given $1 million to the I-920 campaign, about two thirds of all contributions. He had paid $790,000 to a signature gathering company to put the measure on the ballot.
Selig says he is not bankrolling the I-920 campaign out of self-interest. Like many wealthy people, Selig said, he can afford to pay estate planners and attorneys to minimize his tax liability. He said he had no idea how much his estate would owe.
Oh, really?
Washington’s tax applies to about 200 estates per year — about one half of 1 percent of all deaths, according to the state Department of Revenue. Estates worth less than $2 million ($4 million for couples) are exempt, and the value of property used primarily for farming can be deducted from the taxable estate.
The state’s tax rate starts at 10 percent and climbs to 19 percent for the largest estates. That’s in addition to the federal estate tax.
Washington’s tax was created last year by Gov. Christine Gregoire and the Democrat-controlled Legislature. The money generated — about $100 million a year — goes to a dedicated fund to pay for schools. A citizen initiative repealed a previous inheritance tax in 1981.
Initiative opponents say the estate tax helps make the Washington tax system more equitable. Because the state has no income tax, it relies heavily on sales taxes, which disproportionately affect the poor and middle class.
“We have to remember, the owners of these businesses have been benefiting from Washington state’s deeply regressive tax code for their entire work lives,” said Sandeep Kaushik, spokesman for the No on 920 campaign. “They’ve been enjoying a huge tax advantage for decades of their lives and have been allowed to escape paying their fair share.”
“Follow the money. Who is actually bankrolling this campaign? Is Frank Blethen a small businessman? Is Martin Selig a small businessman? Is John Nordstrom a small businessman?” he asked.
Opponents of I-920 have raised even more money to defeat it: $1.7 million so far. They, too, have relied on some big-money donors, including Bill Gates and his father, William H. Gates Sr., who together have given $285,000. National and state teachers unions have given more than $900,000.
This is one case where, if it is good for Bill Gates, it is good for me.