By Anthony Smith, The Seattle Medium
On Tuesday, Democratic lawmakers introduced Senate Bill 6346, known as the “millionaire’s tax,” which would impose a 9.9% income tax on Washington residents earning more than $1 million annually. Gov. Bob Ferguson, a strong proponent of taxing the state’s wealthiest residents, called the proposal “a good start” but said it falls short of providing meaningful relief to working families.
Sponsored by Rep. Joe Fitzgibbon and Sen. Jamie Pedersen, the bill would direct revenue toward expanding the Working Families Tax Credit, providing tax breaks for small businesses, eliminating the sales tax on personal hygiene products, and boosting K–12 education funding, among other priorities.
Republican Sen. John Braun and Rep. Drew Stokesbary issued a statement Tuesday calling the income tax “unconstitutional” and warning that “an income tax on anyone will eventually turn into an income tax on everyone.”
When asked to respond, Pedersen emphasized that the tax would apply only to individuals making more than $1 million.
“We are not interested in increasing taxes on working people. It’s not happening,” Pedersen said.
While Ferguson praised the leadership of Democratic lawmakers, he made clear that the bill would require significant changes to earn his full support.
“We agree on many key and important points. The Senate’s proposal is a good start, but we still have a long way to go,” Ferguson said.
“When I announced my support for a millionaire’s tax back in December, I said a significant percentage of the revenue must go directly back into the pockets of Washingtonians. The current proposal is not close to achieving that important objective,” he added.
Ferguson highlighted three components of the bill he supports: the elimination of the age limit on the Working Families Tax Credit, a sales tax exemption for hygiene products, and a tax break for small business owners. Approximately 7% of the revenue from the millionaire’s tax would go toward the WFTC.
“The Working Families Tax Credit is an important program, but the eligibility is too narrow right now. Too many working families don’t qualify, and we need to improve that,” Ferguson said.
He also urged lawmakers to significantly increase the proposed small business tax relief. The bill currently allocates $104 million for that purpose—far less than the $1 billion he originally proposed.
“We have some negotiating to do and I understand that, but I appreciate them including a tax break for small business owners. It will need to be much higher,” Ferguson said.
Regarding the proposed sales tax exemption for hygiene products, Ferguson stressed the importance of including essential items such as diapers.
“Diapers are obviously essential for many Washingtonians. There’s a national survey that says 28% of parents reported they skipped meals in order to afford diapers,” he said. “We need to make life more affordable for more Washington families, and exempting the sales tax for diapers and other baby products is a good example of doing that.”
Ferguson expressed optimism that an agreement with lawmakers could be reached before the end of the legislative session.
“I remain confident that we’ll get where we need to be. There is still plenty of time left in this legislation,” he said. “I want to be clear that as governor my focus will be that we are listening and hearing the voices of many Washingtonians who are struggling right now and experiencing a lack of affordability in our state.”
When asked about a statement Ferguson released earlier in the week, in which he said he could not support the bill in its current form, Pedersen said the legislation is a work in progress.
“If there’s one certainty about this bill, it is that the bill Rep. Fitzgibbon and I introduced yesterday will not be the same bill that goes to the governor’s desk,” Pedersen said. “We look forward to continued conversations. We’ve been in very regular conversations with him for six months, including and up to yesterday afternoon.”
If enacted, the millionaire’s tax would go into effect no earlier than 2029. A public hearing is scheduled for Friday, Jan. 6.
