Washington millionaires tax faces repeal ballot fight
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A ballot fight over Washington's new income tax on high earners is taking shape, with a repeal measure likely to go before voters this November.
Why it matters: The state's new tax on annual incomes above $1 million — dubbed the "millionaires tax" by supporters — is expected to raise more than $3 billion per year, if it survives efforts to overturn it.
Catch up quick: Let's Go Washington, a conservative political committee, submitted more than 500,000 signatures earlier this month in support of an initiative to repeal the tax, which the Legislature approved earlier this year.
- The proposed repeal measure, I-645, needs only 308,911 valid signatures to advance to the November ballot, making it almost certain to qualify.
The latest: Supporters of the tax launched their own campaign Tuesday to defend it.
What they're saying: Repealing the tax would be "going backwards," Gov. Bob Ferguson said at a press conference Tuesday.
- He said the income tax will pay for important state needs like education, while also providing tax breaks for small businesses and families.
The other side: Brian Heywood, a hedge fund manager who founded Let's Go Washington, predicted in a news release that the tax will eventually expand to more people.
- "Every wage earner and voter knows they have a target on their back, and this income tax is coming for all of us," Heywood said.
Ferguson said he would veto any legislative effort to lower the $1 million threshold for who pays the tax, which is set to rise with inflation.
Context: The income tax is a key part of Democrats' efforts to reform the state's tax code, which they say relies too heavily on sales taxes that hit low-income Washingtonians hardest.
- Opponents of the tax have argued it violates the state constitution and could drive away wealthy residents, hurting the state's economy.
What we're watching: Expect big spending on both sides of the debate as November approaches.
- Opponents of the tax are also pursuing legal challenges to try to get it struck down in court.