Revised Washington millionaire's tax wins Ferguson's support
Add Axios as your preferred source to
see more of our stories on Google.
Photo illustration: Axios Visuals. Photo: Mike Kane/Bloomberg via Getty Images
A new income tax on high earners is looking more likely in Washington state, after Gov. Bob Ferguson said on Friday he's willing to sign the latest version of the proposal.
Why it matters: Washington is one of only nine states that doesn't tax personal income — a status that would change if the so-called millionaire's tax is enacted.
Zoom in: The latest draft of the plan continues to propose a 9.9% tax on annual income over $1 million, while offering tax breaks for small businesses.
- But it changes how it spends some of the revenue.
The revised plan would spend additional money expanding a state tax rebate program, the Working Families Tax Credit.
- And it strips language that would have let a surcharge on high-grossing businesses expire a year early — language that some Democrats argued would have been a corporate tax giveaway.
- The amended plan also removes an earlier provision that would have used part of the money to help cover the cost of providing public defense attorneys for criminal defendants, a mounting expense for local governments.
- The new proposal instead would direct 5% of the tax revenue toward a dedicated account for child care programs.
What they're saying: The revised plan "will help make our state more affordable," Ferguson said in a written statement on Friday.
- "I will sign this version of the bill."
Flashback: Ferguson had objected to the initial Senate version of the bill, arguing it didn't provide enough tax relief.
State of play: Republicans, who are in the minority in both legislative chambers, oppose any type of income tax, arguing it violates the state constitution and will expand to more residents over time.
What's next: To reach the governor's desk, the amended measure needs to clear both the state House and the state Senate in the coming days.
- The Legislature is in session through Thursday.