Former WA Supreme Court justice joins legal effort against income tax

(The Center Square) — Former Washington State Supreme Court Justice Phil Talmadge, a prominent Democrat, has joined a legal team preparing to challenge the newly-enacted income tax on households making $1 million or more, the Citizens Action Defense Fund has announced.

Also retained by CADF’s legal team is former State Attorney General Rob McKenna, who was involved in an unsuccessful lawsuit against the state’s capital gains income tax.

Talmadge served as a state senator between 1979–1995, representing West Seattle, before he was elected to the state’s high court. He served until 2001 and then opened Talmadge Law Group. Phil Talmadge has been repeatedly selected as a Super Lawyer in Washington state.

Admitted to legal practice in 1976, Talmadge has previously argued against the constitutionality of a progressive income tax in a 2010 evaluation of Initiative 1098, a proposal that was overwhelmingly rejected by Washington voters.

The evaluation cites numerous prior State Supreme Court rulings going far back as the 1930 Aberdeen Savings and Loan Ass’n vs. Chase decision ruling that income is considered property. Because of that, income is subject to the 14th Amendment, added to the state constitution in the 1930s, allowing properties to be taxed at different rates based on their class. However, that amendment also requires that the rate be uniform within that class.

According to an argument in favor of the amendment included in the 1930s voter pamphlet, “under the proposed amendment it will be possible to tax bonds and stocks other than those secured by or representing property taxed in this State, at moderate rates, leaving them still desirable as investments. Stocks and bonds cannot pay the same tax as real estate, and escape altogether under our present system.”

Senate Bill 6346 introduced this session imposes a 9.9% levy on personal income over $1 million. It was signed into law by Gov. Bob Ferguson on March 30.

In a statement to The Center Square, CADF Executive Director Jackson Maynard said “this is the legal dream team. We are incredibly pleased that we got such an experienced jurist and legislator as Phil Talmadge joining this effort,” adding that he “lends not only a great deal of legal expertise but also a bipartisan aspect to this fight.”