OLYMPIA – A new proposal to tax millionaires in Washington state is gaining traction as it cleared a key Senate committee. Senate Bill 6346 aims to create a 9.9% tax on income over $1 million starting in 2028.
The bill proposes to direct new revenue toward funding K-12 education, healthcare and tax relief for working families and small businesses.
During a committee meeting on Monday, Democrats rejected all Republican amendments. One significant amendment would have nullified the bill unless lawmakers amended the state constitution to ensure only millionaires would be taxed.
“This provision is null and void unless the legislature passes a constitutional amendment codifying the rate at 9.9% as well as the income threshold at $1 million index for inflation. This has to do with trust. We’ve seen just in the committee hearing recently that over sixty-one thousand people signed in against this bill. These are people who understand that this is just the first step toward creating a universal income tax that’s going to apply to everyone in our state,” said Senator Chris Gildon (R-Puyallup).
Republicans also expressed concerns that the tax could drive wealthy residents out of the state.
“They’re already leaving, so the number of people not paying tax is going to include some of the same millionaires that we’re counting on to pay. I have a few friends in that category. They’re not here anymore,” said Senator Keith Wagoner (R-Sedro-Wooley) .
Governor Bob Ferguson has shown support for the tax but is advocating for more relief for lower-income families and small businesses.
The bill has been forwarded to the Rules Committee for a second reading. If it becomes law, the first tax payments would begin in 2029. However, court challenges are anticipated.
