Washington Governor Bob Ferguson Backs Millionaires Tax Proposal

Washington Governor Bob Ferguson has expressed his support for a proposed income tax targeting residents earning over $1 million annually. This initiative, backed by some Democratic legislators, suggests a 9.9% tax on adjusted annual gross income exceeding the $1 million threshold. Ferguson indicated his readiness to sign the legislation into law in 2026, although he acknowledged that the tax would not generate revenue until 2029. The governor's endorsement comes amid a projected budget shortfall of $2.3 billion through mid-2027.

Washington State StandardThe Olympian

Ferguson emphasized that the revenue from this tax should be allocated to increase eligibility and payments under the state’s Working Families Tax Credit, provide tax relief for small businesses, bolster K-12 education, and reduce sales taxes. He noted that while he is optimistic about the tax's approval, he anticipates legal challenges and potential voter referendums, given the state Supreme Court's previous rulings deeming income taxes unconstitutional.

Washington State StandardThe Olympian

The upcoming 60-day legislative session, commencing on January 12, 2026, is expected to revisit contentious tax debates similar to those of the previous session. House Republicans, led by Rep. Travis Couture, have voiced strong opposition to the income tax proposal, labeling it a "nonstarter" due to legal precedents and a recent initiative prohibiting income taxes. Couture criticized the proposal as a failure to address what he termed a "spending addiction" in Olympia, arguing that it would ultimately burden residents.

Washington State Standard

Democratic leaders, including House Majority Leader Joe Fitzgibbon, have expressed enthusiasm for the tax, viewing it as a necessary measure to alleviate financial pressures on lower-income households. Fitzgibbon noted that while there is support for the tax, there may be differing opinions on its intended uses.

Washington State Standard

The proposed income tax is part of a broader discussion among Washington Democrats about reforming the state's tax system, which is often criticized for being regressive. Ferguson has also indicated openness to constitutional amendments that would codify the $1 million threshold for the tax and allow it to adjust with inflation. However, he remains opposed to other tax proposals, such as a wealth tax, which he previously deemed untested and potentially problematic in terms of legal challenges.

Washington State Standard

As the legislative session approaches, the focus will be on how lawmakers balance the need for increased revenue against the backdrop of a significant budget deficit. Ferguson has stated that his budget proposal will prioritize spending reductions rather than new taxes, while also rejecting increases in property or sales taxes.

Washington State Standard

There is a notable discrepancy regarding the projected budget shortfall, with some sources estimating it at approximately $4 billion to maintain current services and programs. This gap highlights the ongoing debate about fiscal responsibility and the potential need for new revenue sources.

The Olympian

“People don’t want an income tax,” — Rep. Travis Couture, R-Allyn

Washington State Standard

“Progressive tax reform cannot just mean increasing contributions from those who can afford it,” — Governor Bob Ferguson

Washington State Standard

“He’s looking at the same numbers we are and realizes we have to do something,” — House Majority Leader Joe Fitzgibbon, D-West Seattle

Washington State Standard

“I want to be clear that I will not support an income tax for people who make less than $1 million in a year,” — Governor Bob Ferguson

Washington State Standard