Washington’s much debated millionaires’ tax is going before voters in November – as lawmakers expected. Initiative 645 will ask voters whether to repeal the tax, or leave it in place.
Washington has been one of 9 states without an income tax. Over the past century, lawmakers have been unsuccessful in implementing some form of income tax.
But in March, Gov. Bob Ferguson signed a new 9.9% tax on annual household income exceeding $1 million. For example, for a household making $1.2 million in one year, the tax will apply to $200,000 of their income.
The tax is scheduled to take effect in 2028, which means the first collection would be due in April 2029. It is expected to collect more than $3 billion per year
The tax was immediately met with opposition. Political organization Let’s Go Washington gathered more than 500,000 signatures to get the measure on November ballots.
A yes vote repeals the new tax. A no vote keeps the new tax in place.
Supporters of I-645 say the new tax opens the door to future taxes on incomes lower than $1 million, though the governor has said he would block any attempt to do so. The ballot measure would also explicitly prohibit income taxes.
Opponents of the ballot measure say repealing the tax would decrease funding for education and health care. They also say the tax cuts that were passed this year for working families and small businesses are unsustainable without the millionaires' tax.
If Initiative 645 fails, the challenges continue in court. Still pending is a lawsuit claiming the millionaires’ tax violates the state constitution.
