Washington Senate Advances 9.9% Tax on Millionaires

Millionaires in Washington could start paying more in taxes after a bill advanced out of the Senate Monday.

What Senate Bill 6346 Would Do

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Senate Bill 6346 would impose a 9.9% tax on personal income over $1 million a year, and applies to household income, meaning married couples and registered domestic partners with combined earnings over that amount would pay.

Constitutional Concerns Raised

7th District State Senator Shelly Short said this tax is unconstitutional in Washington.

"The constitution is being ignored, the voters are being ignored," Short said. "I believe the Democrats feel that they have a court that will rule in their favor; this will get to the Supreme Court in some fashion."

Governor Ferguson’s Position on Revenue Use

Shortly after the Senate advanced the bill on a 27-22 vote, Gov. Bob Ferguson said he did not support where the money would go. He wants $1 billion from the tax to go to small businesses, and expand the "Working Families tax credit" to more families and bring them more money. He expressed disappointment that the Senate did not address these issues.

"He wants to see more of that income tax to go back to the taxpayer," Short said. "I'm pretty sure the folks who sponsored the income tax just want the revenue, so there's going to be a little bit of a disagreement going forward, and that's not a bad thing."

Supporters and Opponents Weigh In

Supporters of the bill caution that it will be little help to the state's finances in the near-term. Opponents caution that this bill could be used as a framework for an expanded tax covering households making less than a million dollars a year.