Washington State Considers "Millionaires Tax" Amid Income Inequality Concerns

In a significant shift for Washington state politics, lawmakers are advancing a proposal for a personal income tax targeting high earners, known as the "millionaires tax." This initiative, formally Senate Bill 6346, proposes a 9.9% tax on household income exceeding $1 million, aiming to generate approximately $3.7 billion annually. The State Senate approved the bill with a 27-22 vote, primarily supported by Democrats, and it now awaits consideration in the House before the legislative session concludes on March 12, 2026.

New York Times

Washington is one of only nine states that does not impose an income tax, a status that has attracted many affluent residents, including notable figures like Jeff Bezos and Bill Gates. The proposed tax aligns Washington's approach more closely with neighboring states such as Oregon and California, where higher income tax rates are already in place for wealthy individuals. Advocates argue that the tax is necessary to address widening income inequality and to fund essential public services, including education and healthcare.

New York Times

While the majority of Washington Democrats support the millionaires tax, dissenting voices within the party have emerged. Democratic Senators Deb Krishnadasan and Adison Richards, both from the 26th Legislative District, have publicly opposed the tax. Krishnadasan expressed concerns about the immediate financial struggles facing families, stating that the proposed relief is insufficient. She emphasized the need for more comprehensive support for constituents grappling with rising living costs.

The OlympianNew York Times

Richards echoed similar sentiments, arguing that the state should focus on reforming its spending priorities rather than introducing new taxes. He warned that the tax could disproportionately affect small businesses and expressed skepticism about the long-term implications of the proposal, including the potential for future tax thresholds to be lowered.

The Olympian

House Speaker Laurie Jinkins indicated strong support for the measure within her caucus, with over three dozen lower-chamber Democrats endorsing the House companion bill. However, moderate Democrats like Kirkland Representative Amy Walen have signaled their opposition to the income tax, reflecting a divide within the party.

The Olympian

Republican state Representative Michelle Valdez criticized the proposal, asserting that constituents in her district do not support a state income tax. Valdez anticipates that the bill will face legal challenges and noted that any revenue generated would not address current budgetary issues, as collections would not begin until 2029.

The Olympian

The millionaires tax is set for a public hearing in the House Finance Committee on Tuesday at 8 a.m., followed by an executive session later in the week. As the legislative session progresses, the future of this tax proposal remains uncertain, with ongoing debates about its implications for Washington's tax system and public services.

New York Times

• “Right now, families are struggling with the rising costs of housing, groceries, childcare, and everyday essentials,” — Deb Krishnadasan, Democratic Senator

The Olympian

• “but it doesn’t become more fair by just adding taxes.” — Adison Richards, Democratic Representative

The Olympian

• “This money is not going to fix any current issues that we have,” — Michelle Valdez, Republican Representative

The Olympian

• “It’s just vitally important that we get this absolutely right at a very critical juncture in our state’s history,” — Adison Richards, Democratic Representative

The Olympian