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Washington Democrats Roll Out 9.9% Millionaires Tax as Governor Calls for Overhaul

Ferguson insists on bigger household relief plus stronger small‑business support before the bill advances.

Overview

  • Senate Bill 6346 would levy a 9.9% tax on annual income above $1 million, raising an estimated $3–4 billion a year with 5% set aside for a county public defender fund and the rest directed to the general fund.
  • A Senate Ways and Means hearing is set for Friday, Feb. 6 at 1:30 p.m., with the proposal slated to start in January 2028 and first payments due in April 2029 if enacted.
  • Gov. Bob Ferguson said he cannot support the draft, pressing for more money returned directly to residents, a roughly $1 billion small‑business relief package rather than about $104 million, expanded Working Families Tax Credit, and additional sales‑tax exemptions such as diapers.
  • Democratic sponsors say the plan mirrors existing tax code and offers credits for capital gains and B&O taxes already paid, estimating roughly 30,000 taxpayers would be affected.
  • Republicans and business groups oppose the measure, warning of economic harm and noting it would apply to married couples with combined income above $1 million, while legal or ballot challenges are anticipated if it advances.