Washington's new income tax faces a repeal vote under I-645

How it works: A yes vote on Initiative 645 would repeal the income tax, which the Legislature passed this year and is set to take effect in 2028.

• A no vote would keep the tax in place.

By the numbers: The 9.9% tax is set to apply to the portion of annual income above $1 million.

• A Washington resident earning $1.1 million a year, for instance, would pay the tax on $100,000, for an estimated bill of $9,900.
• The tax doesn't affect individuals and married couples who make $1 million or less per year, a threshold that is set to rise with inflation.

• State officials estimate about 25,000 households would pay.

Yes, but: Opponents of the tax warn the Legislature could eventually lower the $1 million threshold, extending the tax to more people — although Gov. Bob Ferguson has pledged to veto any such attempt while he is in office.

• Tax opponents also argue it will drive wealthy residents and businesses out of Washington.

Those who want to keep the tax say it makes Washington's tax code fairer by asking the wealthy to pay more, while raising money for education and other state programs.

• Washington voters have rejected income tax proposals 10 times since 1934, most recently in 2010.

What I-645 would do

In addition to repealing the 9.9% tax and banning future state income taxes, the initiative would block cities and counties from taxing personal income.

• At the same time, it would leave in place several tax cuts that were included in the income tax law.
• Those include reduced taxes for small businesses; expanded tax rebates for low- and middle-income Washingtonians; and the elimination of sales taxes on diapers, over-the-counter drugs, and personal hygiene products such as shampoo and deodorant.

Budget effects

Opponents of I-645 say that repealing the tax would put the state in a budget hole and make it difficult or impossible to retain those tax breaks.

• The new tax is expected to raise more than $3 billion per year for state government, while dedicating 5% of revenue toward childcare and early learning programs.
• "Nice things cost money," state Sen. Manka Dhingra (D-Redmond) said in a recent forum, while urging voters to reject I-645.

I-645 backers say the state should ditch the new tax and rein in spending.

• Raises for state employees and increased government hiring are examples of recent growth in state spending, former U.S. Rep. Jaime Herrera Beutler, who is working with the Yes on I-645 campaign, said at a debate last week.
• She suggested cutting university administration costs as one way to save money.
• "I'm not saying we can fix everything — and that's not my job, that's Olympia's job," said Herrera Beutler, a Republican. "However, there are places they can start."

The tax's legality

The new tax also faces a legal hurdle: Past state court rulings have struck down income taxes targeting the wealthy.

• The state Supreme Court ruled in 1933 that income is property, which the state constitution says must be taxed at a uniform rate.
• The lead author of the income tax, state Sen. Jamie Pedersen (D-Seattle), says that case, Culliton v. Chase, was wrongly decided. He and other top Democrats are betting the state Supreme Court will overturn the 1933 ruling.
• Republicans who oppose the income tax argue it is blatantly unconstitutional, given that the high court has not reversed itself. A legal challenge is already underway.

What's next: Election officials recommend returning ballots to an official drop box, which can be done through 8pm on Nov. 3.

• If voting by mail, election officials recommend filling out and returning your ballot as soon as you receive it.