OLYMPIA, Wash. – The “Millionaire’s Tax” continues to stir debate as the Washington state legislative session enters its final weeks. After passing the state Senate last week, Senate Bill 6346 has moved forward to the House Finance Committee.
A public hearing was held by the committee on Tuesday morning, allowing around 100 people to express their views during a two-hour session. Both supporters and opponents of the bill presented their arguments.
Supporters of the bill argue that it could generate $3.5 billion annually. They believe it would make the tax system fairer by providing relief to low to middle-income earners.
April Sims from the Washington State Labor Council highlighted the importance of addressing critical issues with adequate resources.
“Health care access is backsliding, grocery costs are rising and the future of work is less secure,” Sims said. “These are the kinds of problems our government should help solve but without proper predictable resourcing you simply can’t. What will help by taxing wealth at the extreme margin and will equip you with the tools to help Washington families. It’s time for the wealthiest people in the history of this world who call Washington home to pay their fair share.”
Opponents raised concerns about how the bill taxes businesses and corporations while exempting small businesses earning less than $300,000 annually.
Max Martin from the Association of Washington Business voiced concerns about the impact on employers.
“In practice, a tax aimed at individuals would become a new tax on employers, including businesses that may have a strong year on paper, but need the cash to reinvest into their business or weather volatility,” Martin said. “This is coming at a time when many employers are still absorbing last sessions operating cost increases. We appreciate the business tax relief included here, but we believe Washington could be doing more to support small and medium-sized businesses. For those reasons, we respectfully oppose the proposal before us today and look forward to working with lawmakers.”
The bill is expected to be voted on soon in the House. It will be presented before the House Finance Committee again on February 27, according to the legislative schedule.
