‘Our checkmate is vote yes on I-645’: Jim Walsh makes his case for repealing WA’s tax on income above $1 million

Washington voters will decide whether to repeal the state’s new income tax through I-645 on the Nov. 3 ballot. A yes vote would repeal the 9.9% tax on income above $1 million, while a no vote would retain it.

Speaking on “The John Curley Show” on KIRO Newsradio, state Rep. Jim Walsh urged repeal and argued that voters should not rely on assurances that the tax will remain limited to higher earners.

“I will oppose any extension of the state income tax, from a million dollars down to $1 of income in a household,” Walsh said. “I want to get that clear right now.”

Walsh warns against counting on special exemptions

The tax applies to individuals, with taxable income calculated using adjusted gross income reported on federal returns and adjustments specified in state law. The Department of Revenue projects about 25,000 households would be subject to it.

Walsh described his view of how some businesses and interest groups might respond.

“Some of the big tech players, some of the different industry groups, they all think that they’re going to sit on their hands, let this state income tax stand, and then negotiate sweetheart deals where they carve themselves out of it, one way or the other,” Walsh said.

The existing tax is scheduled to apply to income received beginning in 2028, with the first payments due in 2029.

“There’s not going to be any surplus. There’s not going to be enough money to carve out everybody a sweetheart deal,” Walsh said. “So somebody’s going to get stuck, and let’s just avoid that whole thing.

“Let’s vote yes. Let’s repeal the state income tax and avoid this kind of symphony of corruption that will happen a year or two down the line if we let this horrible thing stand,” he added.

Berg’s comments bring future expansion into the discussion

State Rep. April Berg made remarks previously about the tax’s implementation. Berg said she had no intention of voting to lower the threshold below $1 million, while acknowledging limits on constraining future legislators.

I-645 goes beyond repealing the existing tax. It would prohibit state and local governments from imposing taxes on individual income or taxes measured by individual income, according to the Legislature’s summary.

Walsh connected his argument for repeal with what he described as distrust of the legislative process.

“Nobody trusts the regular legislative process. Nobody trusts the initiative process. I mean, shoot, I’m trying to convince people to trust the election process and voting. There’s so much cynicism,” Walsh said. “We need to cut the cynicism, John.”

Repeal would preserve other provisions of the law

I-645 would retain provisions taking effect in 2029 that eliminate sales taxes on diapers, certain personal hygiene products, and some over-the-counter drugs. It would also preserve an expansion of a tax credit program for lower-income families, according to Washington State Standard’s voter guide.

Walsh argued for relying on existing taxes instead of the income tax.

“We have a three-pronged tax system in Washington. We have a sales tax, we have a property tax, and we have a business tax, a B&O tax. Those are the main taxes we have,” Walsh said. “Let’s protect what works and not keep mucking with it by creating new taxes.”

After listeners expressed confusion about the ballot language, Walsh returned to his instructions for repeal supporters.

“Our checkmate is to vote yes on I-645. Yes to repeal it,” Walsh said.

Watch the full discussion in the video above.

Listen to “The John Curley Show” weekdays from 3 p.m. to 7 p.m. on KIRO Newsradio 97.3 FM.

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