Full Breakdown
Washington Governor Bob Ferguson to Sign Revised Millionaires Income Tax Proposal
3/7/2026, 4:42:44 AM
Key Details of the Proposal
Washington Governor Bob Ferguson announced his intention to sign the latest version of the proposed millionaire income tax, which aims to impose a 9.9% tax on household earnings exceeding $1 million annually. This proposal, often referred to as the "millionaires tax," has undergone significant revisions to enhance tax relief for working families and small businesses. The updated bill includes provisions for free school meals for all students, exemptions on sales tax for over-the-counter medicines, and an expansion of eligibility for the Working Families Tax Credit, potentially increasing the number of qualifying households from 350,000 to 810,000.
Legislative Context and Support
The proposal has been a focal point of debate among Washington lawmakers. Ferguson emphasized that any bill he signs must ensure that a substantial portion of the revenue is returned to families and small businesses to improve affordability in the state. Democratic Rep. April Berg, who sponsored the amended version, expressed confidence in the bill's passage, stating, “Absolutely,” when asked if it would clear the House. State Sen. Jamie Pedersen, who originally proposed the income tax, noted that the changes would benefit schools and address the tax code's reliance on working families.
Opposition and Criticism
Despite support from Democrats, the proposal has faced significant opposition from Republican lawmakers. Critics argue that the tax is unfair and could exacerbate the state's affordability issues. Sen. Nikki Torres, R-Pasco, stated that the tax could negatively impact small business owners who report their business income on personal tax returns. She criticized the proposal as a continuation of a pattern of increasing taxes without effectively lowering costs for families. Chris Gildon, the Republican budget leader in the Senate, labeled the proposal as unconstitutional and unpopular, asserting that it does not address the core issues of affordability.
Next Steps in the Legislative Process
The revised millionaire income tax proposal has cleared the Senate and is now awaiting a vote in the House. The legislative session is set to conclude on March 12, 2026, making this vote critical for the bill's future. If passed, the proposal will mark the introduction of Washington's first income tax, a significant shift in the state's tax policy landscape.
Verbatim Quotes
- “I will sign this version of the bill.” — Bob Ferguson, Governor of Washington
- “We are providing historic tax relief to Washington families when they need it the most,” — April Berg, Democratic Representative
- “And despite all their talk about affordability, the end result is the same old formula — more taxes, more government spending, and very little that actually lowers costs for working individuals and families,” — Nikki Torres, Republican Senator
The outcome of this legislative effort will have lasting implications for Washington's tax structure and the financial landscape for its residents.
