It's Not the Same

Time Has Changed Things

            When I was in the Air Force, I dreamed of retiring in a small town, teaching school, and coaching football. Upon retirement, I delayed my dream for three years to fly small planes in Alaska before deciding where I would settle. Reassignments during unfavorable real estate markets left me with two mortgaged homes. One was in Nebraska and the other in Eastern Washington.  I could have returned to either of those, or I could have honored my parents’ wishes to return to my boyhood home in Missouri. I liked all three locations, but I opted for the Spokane area because my dreams coincided with the financial climate at the time. I say, “at the time”, because things have changed since I made my decision.

None of the three states had had an estate tax. Nebraska did, however, have an inheritance tax which I considered the same thing. I thought, and still think, that citizens should be able to leave their property to their heirs. I see no reason to break up family holdings in order to pay death taxes. In 2005 the Washington State legislature voted to levy a tax on the estates of the wealthy, and all funds were to go to schools. Research reveals that the new tax had no impact on school finding and the definition of “wealthy” now includes those with moderately successful family businesses. Time has changed things.

Washington was the only state I considered with no income tax. That too has changed. Our legislature recently voted to tax capital gains. Income derived from the sale of stocks, real estate, and “yes” family businesses are now subject to a 7% tax. I fear this is just a foot in the door. Government sources of income have a history of growing. The modern federal income tax rate was 1% for most Americans up to a maximum of 7% for those extremely wealthy. Within 20 years the rates had climbed to over 60%. I believe the tax on capital gains income will both expand and grow.

In all three states, the amount of education determined the pay for new teachers. Applicants with advanced degrees receive considerably more compensation than recent graduates. Washington was unique, however, in that teachers were paid by the state rather than by the district. So, the choice between applicants was independent of money considerations. Districts were free to select the best teachers available without considering salary. This was attractive as, my education level put me at the top of the pay scale. It would have been much more difficult for me to get a teaching job in either Nebraska or Missouri. This too has changed. A Few years ago, the legislature allowed schools in high cost of living areas to supplement teacher’s pay from local funds. Other districts quickly followed suit such that today, new teachers with advanced degrees cost the district significantly more than recent college graduates.  I would have been much less likely to be hired.

I am not sorry I decided to become art of the Inland Northwest. I have come to love it here. It is my home, and I plan to live here the rest of my life. But time has changed things. If the laws had been the same when I left the Air Force, I’m not sure I could have made the same decision.

Frank Watson is a retired Air Force Colonel and long-time resident of Eastern Washington. He has been a free-lance columnist for over 20 years.