OLYMPIA, Wash – For the first time in state history, Washington now has an income tax. Governor Bob Ferguson signed the so-called Millionaires’ Tax into law Monday.
The governor’s office says less than one half of one percent of Washingtonians will pay the tax, “but it will make life more affordable for millions.”
“Adoption of the historic Millionaires’ Tax makes our tax system more fair, and means free meals for K-12 students, the largest tax break in state history for small businesses, eliminating the sales tax for baby diapers, and sending a check to nearly 500,000 working families to make life more affordable,” Gov. Ferguson said.
The 9.9 percent applies to households making more than one million dollars per year.
Opponents call the tax unconstitutional and are prepared to immediately challenge it in the courts and through the initiative process.
The group Let’s Go Washington plans to file a referendum immediately to repeal it.
“We are filing this referendum to repeal Governor Ferguson’s unconstitutional income tax because unlike King Bob, we believe that the framers of our state’s constitution meant it when they wrote that ‘all political power is inherent in the people and governments derive their just powers from the consent of the governed’,” said Let’s Go Washington founder Brian Heywood. “Our state constitution is the law of the land and not a suggestion that the legislature and the Governor can ignore on a whim.”
The Washington State Standard published a map with data from the Department of Revenue showing how many people in each legislative district would have to pay the tax.
In District 3, for example, the tax would apply to 211 households. District 3 encompasses the urban area of Spokane County.
Not surprisingly, the highest concentration of those who will have to pay the tax is in the Seattle area, with nearly 2,700 taxpayers in District 41 subject to the tax.
District 41 includes Mercer Island and Bellevue in King County.
U.S. Representative Michael Baumgartner who represents much of eastern Washington has been highly critical of the tax.
On Twitter/X Monday, Rep. Baumgartner wrote, “The camel’s ass is under the tent. Bob Ferguson and his SEIU bosses creation of a state income tax that will undoubtedly have an insatiable appetite for the middle class is a terrible day for Washington’s economic future. You get the government you deserve, will the voters of our state fight back or cheer on this nonsense?”
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