Washington State Approves 'Millionaire Tax'

Washington lawmakers passed the state's first income tax of 9.9% on earners making over one million.

The Details: The Democrat-led Senate approved the bill Wednesday night. They said the tax will help fund prisons, education, universal school lunches, and reduce or replace other taxes, including the sales tax on hygiene products. The tax is expected to bring in up to $4 billion annually. Gov. Bob Ferguson (D-WA) has expressed support for the law, and once signed, it will go into effect on Jan. 1, 2028. Republicans and some Democrats raised concerns that the tax might lead some large business leaders to leave the state.  

Key Quote: Senate Republican Leader John Braun said that several organizations are already planning legal challenges and that the law may conflict with "the state constitution's requirement that property cannot be taxed at different rates or on different income levels," according to Politico (Lean Left bias). Gov. Ferguson argued, "It saves working parents money and ensures our kids are prepared to learn by funding free breakfast and lunch for all Washington K-12 students, which has been a priority of mine since I ran for governor."

How The Media Covered It: Fox Business (Lean Right) noted that Washington passed the tax "despite concerns of wealth flight" in its headline and mentioned the possible "exodus of high-income earners" in the first sentence of the article. The Hill (Center) and Politico did not mention the largely Republican objection until halfway through their articles.

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