Washington House approves income tax after 24-hour debate

State of play: The bill now heads back to the Senate for final approval.

• It would impose a 9.9% tax on annual income over $1 million — what supporters call a tax on millionaires.
• The measure would raise about $3.5 billion per year and affect roughly 20,000 taxpayers statewide, according to legislative staff estimates.
• It would take effect in 2028.

Context: The House debated the tax bill and proposed amendments for more than 24 hours, from 5:38pm Monday until about 6:10pm Tuesday.

• About 16 hours in, House Clerk Bernard Dean told Axios it was "certainly the longest floor debate in recent history."
• "I've worked here for 26 years and cannot recall a floor debate this long," Dean wrote in an email.
• Lawmakers then kept going for another eight hours.

Flashback: Washington voters have repeatedly rejected income tax proposals, and the state Supreme Court has historically treated income as property under the state constitution.

• Because the state constitution requires property to be taxed uniformly, that interpretation has posed a barrier to income taxes targeting wealthy residents.

What they're saying: Democratic supporters of the state income tax said it would raise revenue to help pay for priorities such as schools, health care, housing and public safety.

• "As a state, we are struggling to fund these vital services, and we are in desperate need of structural tax reform," state Rep. April Berg (D-Mill Creek), chair of the House Finance Committee, said during Tuesday's floor debate.
• The state's tax code "currently asks working families to contribute a greater share of their income than the ultra wealthy," state Rep. Sharlett Mena (D-Tacoma) said.
• Mena called that a "fundamental inequity in our tax system" that the income tax would help address.

The other side: Republicans argued that the tax was unconstitutional and that it would eventually spread to more people.

• They also argued that more of the revenue should go toward tax relief, such as lowering the state sales tax.
• "There is a pittance of relief for the taxpayers of Washington state," state Rep. Joshua Penner (R-Orting), said on the House floor.

What's inside: Senate Bill 6346 would use a portion of the new income tax revenue to offset existing sales and business taxes.

• The plan would repeal the state sales tax on diapers, over-the-counter drugs and personal hygiene products.
• It would also expand the Working Families Tax Credit to an additional 460,000 households, according to Gov. Bob Ferguson's office. Eligible families can receive rebates of up to $1,330 per year.
• Under the bill, businesses grossing $300,000 or less per year would pay no state business and occupation (B&O) tax, while those grossing $600,000 or less would qualify for a credit, according to legislative estimates.

The bill would then direct 5% of revenues to a fund that pays for child care programs.

Catch up quick: The daylong debate veered at times into theatrics.

• State Rep. Jim Walsh (R-Aberdeen) at one point quoted Monty Python — "No one expects the Spanish Inquisition" — when talking about tax projections.
• Earlier, state Rep. Brian Burnett (R-Wenatchee) recited part of the state's law against necrophilia, arguing that evading the income tax should not carry the same penalty as that crime, a class C felony.
• Another failed amendment would have blocked the tax from taking effect until the NBA brings a professional basketball team back to Seattle. (The Seattle SuperSonics departed for Oklahoma City in 2008.)

What's next: The Senate must approve the House's amendments before the bill can head to Gov. Bob Ferguson.

• Ferguson said last week he was willing to sign the House version of the bill.
• Lawmakers are scheduled to adjourn Thursday.