I have been driving 2017 Subaru Outback 3.6R Touring for last 4 years and I just renewed the license tab for another year. The original sticker price of the car was just over $40,000 and I wa planning to keep it for three (3) years.
Since then the Washington State implemented the RTA (Light Rail) tax which charges people 1% of the car value every year. Not that I cannot afford this progressive tax that charges people for buying more expensive cars, I just do not want pay it. My RTA portion for 2022 was $250.00. That means the car is worth $25,000.
Usually the $25,000 price is reasonable, but now because of the shortage of the new cars, my car is with more than that. That makes me feel better. If the Governemnt wants to help economy, like they should, they should encourage people to spend more. But the State Government is discourage people by taxing more for spending more. I think that is very anti-growth.
The 1% RTA Tax is not much when you consider you must pay 10.01% in sales tax. The State Government is better off if I buy a new car rather than paying 1% RTA tax.
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