Yesterday the Washington State Legislature passed the Millionaire’s Tax, a tax of 9.9% on income over $1 million per year, beginning in 2029. The change is a monumental improvement for tax fairness in our state, asking the wealthiest among us to share more equitably in the responsibility of funding the critical programs and services on which we all rely, while also providing tax relief for Washington’s working families and small businesses.
“Washington’s families are working harder than ever, but they’re struggling to get by because they’re facing out-of-control inflation and an upside-down tax system that is stacked against them. More than ever, we need big ideas to start making the American Dream possible for all of us again. A tax on millionaires is a game changer for working people because it means sustainable revenue for the essential services our communities need, like health care, child care, and great schools, and tax relief for families and small businesses” said Rep. Chris Stearns (D-Auburn), Chair of the Members of Color Caucus. “Balancing our tax system will give families of color a better chance to deal with the high price of everyday expenses, unexpected emergencies, or to plan for the future. By unrigging our tax system, we will help the working families in Washington’s communities of color keep more of their paychecks, restore tax fairness, and make Washington a state where working people can get ahead again.”
“Washington’s tax code was built nearly a century ago for a very different economy, and it simply hasn’t kept up with the realities families and small businesses face today,” said Rep. Jamila Taylor (D-Federal Way), Vice Chair of the Members of Color Caucus. “Right now, working families pay a higher share of their income in taxes than the wealthiest among us. The Millionaire’s Tax begins to rebalance that system while providing real relief for Washington families and small businesses. It will expand the Working Families Tax Credit, remove sales tax from everyday essentials like diapers and over-the-counter medications, and invest in public schools, child care, and the basic services our communities rely on. Washington should not be an outlier when it comes to building a fair, sustainable tax system that works for everyone.”
“I believe that if [I] had the ability to earn over a million a year in wages that [I]’d be happy to pay this tax to help us maintain and continue to build a safety net for all Washingtonians. So I’m voting yes for fairness and economic justice. For the farmers in Eastern Washington to the oyster farmer by Hood Canal…for working parents who need affordable child care and for every child to have free lunch. For moving on from archaic laws that we have the right to amend and challenge to move Washington forward and ensure we are taking care of Washingtonians today and in the future,” said Rep. Natasha Hill (D-Spokane), 2nd Vice Chair of the Members of Color Caucus, in her full remarks during final passage of the bill.