# Washington state millionaire income tax repeal debate

> Live situation record from CLSTR: https://clstr.news/situations/washington-state-millionaire-income-tax-debate
> Updated: 2026-10-22T22:05:05.000Z. Sources: 17. Developments: 5.

Discussions regarding Washington state’s millionaire income tax have centered on administrative complexities and political opposition. Initial concerns raised by tax advisory groups focused on how the tax might affect nonresidents, specifically through structures like New York-based LLCs that generate income within the state. Tax experts, including Brian Mahon of Perkins Coie, noted that the separation of capital gains from other income structures could create scenarios where effective tax rates exceed 9.9%.

State Representatives Noel Frame and April Berg addressed these administrative concerns, with Frame suggesting a focus on current administration rather than hypothetical scenarios, while Berg urged the advisory group to prioritize existing law over speculative changes.

Following these discussions, the debate shifted toward a potential repeal of the tax via Initiative 645. Proponents of the repeal, including the National Federation of Independent Businesses (NFIB) and the Washington Policy Center, argue the tax will harm the state economy. NFIB data suggests that if the tax remains, Washington could face 18,000 job losses and a reduction of 1,400 new businesses annually, with potential losses in goods and services reaching $8.3 billion by 2036.

As the initiative approaches a November vote, opposition has expanded. The Washington State Coalition Against Domestic Violence & Sexual Assault is campaigning against the repeal, arguing that losing the tax would eliminate billions in funding for essential services such as K–12 and higher education, healthcare, childcare, and human services. Conversely, supporters of the tax highlight built-in relief for working families, such as an expanded Working Families Tax Credit and the elimination of sales tax on hygiene products and diapers. A DHM poll of 800 residents conducted in late September indicated that 57% would vote against the repeal, while 35% would vote for it.

## Claims

- Brian Heywood disagrees that the lack of funding is due to the potential repeal of the income tax. (corroborated by 7 sources)
- House Minority Leader Drew Stokesbary argued that the tax is unnecessary and could drive wealthy innovators to other states. (corroborated by 7 sources)
- Senator Manka Dhingra defended the income tax as a way to fix a regressive system and fund services for a growing population. (corroborated by 7 sources)
- Initiative 645 is a ballot measure aimed at repealing the state's income tax on millionaires. (corroborated by 7 sources)
- Initiative 645 proposes to repeal a 9.9% tax on income over $1,000,000. (corroborated by 5 sources)
- The tax is scheduled to begin collection in 2028. (corroborated by 5 sources)
- A DHM poll found 57% of 800 Washington residents would vote no on the initiative. (corroborated by 5 sources)
- The tax could result in 18,000 job losses in Washington. (single source)
- Washington could produce $5 billion less in goods and services in 2028 if the tax remains. (single source)

## Timeline

### 2026-10-22: Washington State Millionaires Tax faces repeal attempt via Initiative 645

Washington voters face a November decision on Initiative 645, which aims to repeal the state's 9.9% tax on individual income over $1 million.

2 sources. https://clstr.news/cluster/washington-state-millionaires-tax-faces-repeal-attempt-via-initiative-645

### 2026-10-19: Washington Initiative 645 seeks to repeal millionaire income tax

Washington voters will decide on Initiative 645, which seeks to repeal a 9.9% tax on income over $1 million. Supporters warn of significant job and economic losses if the tax is not repealed.

8 sources. https://clstr.news/cluster/washington-initiative-645-seeks-to-repeal-millionaire-income-tax

### 2026-10-15: Washington voters to decide on millionaire tax repeal

Washington voters will decide in November whether to repeal a proposed 9.9% tax on annual income over $1 million via Initiative 645.

2 sources. https://clstr.news/cluster/washington-voters-to-decide-on-millionaire-tax-repeal

### 2026-10-09: Washington state leaders debate millionaire income tax repeal

Washington state leaders and activists are debating Initiative 645, a ballot measure that seeks to repeal the state's income tax on millionaires.

10 sources. https://clstr.news/cluster/washington-state-leaders-debate-millionaire-income-tax-repeal

### 2026-09-22: Washington state income tax could affect nonresidents

Washington state tax advisory discussions reveal that nonresidents may be liable for the new millionaire’s tax through complex LLC investment structures, potentially leading to effective rates above 9.9%.

2 sources. https://clstr.news/cluster/washington-state-income-tax-could-affect-nonresidents

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Cite as: Washington state millionaire income tax repeal debate. CLSTR, https://clstr.news/situations/washington-state-millionaire-income-tax-debate