Washington lawmakers are considering a landmark proposal—SB 6834, dubbed the "millionaires tax"—that would impose a 9.9% tax on annual income over $1 million. Proponents argue the tax would rebalance the state's revenue system, where lower-income households currently pay a larger share of their income in taxes. Supporters say the measure could eventually raise billions to fund programs like the Working Families Tax Credit and reduce other taxes on small businesses and essentials.
The proposal faces significant hurdles. Washington lacks a general income tax and the state constitution's interpretation limits graduated income taxes. Opponents worry the bill could open the door to broader income taxation and claim it might discourage high-earner residency. Even if passed, revenue would likely not materialize until around 2029 because of administrative setup and legal challenges.
Supporters maintain that with careful statutory wording—such as inflation-adjusted thresholds and possibly a constitutional amendment—the tax can remain narrowly focused on the wealthiest residents. Whether SB 6834 becomes law will depend on legislative negotiations, potential lawsuits, and possibly voters themselves if a referendum is triggered.
As the debate heats up in Olympia, this "millionaires tax" could be a defining moment for Washington's tax policy. Will the Evergreen State become a testing ground for progressive taxation, or will the proposal fizzle under legal and political pressure? We'll be watching closely.
