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Washington state millionaire income tax repeal debate

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-10-21 18:43 UTC → 2026-10-23 05:43 UTC · added removed

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 maintain of the tax is a vital tool to address a regressive highlight built-in relief for working families, such as an expanded Working Families Tax Credit and the elimination of sales tax system. 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. The tax, passed via Senate bill SB6346, is scheduled to begin collection in 2028.

Versions

  1. 2026-10-23 05:43 UTC Washington state millionaire income tax repeal debate
  2. 2026-10-21 18:43 UTC Washington state millionaire income tax repeal debate
  3. 2026-10-16 15:20 UTC Washington state millionaire income tax repeal debate
  4. 2026-10-10 00:05 UTC Washington state millionaire income tax debate

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