Washington Approves Millionaires' Income Tax

Washington state's Democratic-controlled Legislature approved a new 9.9% income tax on high earners on Wednesday night, sending the measure to Governor Bob Ferguson for signature. The tax, impacting an estimated 20,000 to 30,000 households, applies to annual income exceeding $1 million, with the first payments due in 2029 based on 2028 income. This legislation is projected to generate $3 billion to $4 billion annually, earmarked for funding schools and other state services.

The bill's passage followed extensive debate in the House, lasting over 24 hours and concluding on Tuesday evening. Lawmakers rejected more than 80 proposed amendments during the process. Governor Ferguson has indicated his intent to sign the measure into law, formalizing the state's first income tax on high earners.