Ferguson pitches millionaire’s tax, $3B infrastructure plan in annual address

Washington Governor Bob Ferguson emphasized that the state of Washington remains strong in his annual State of the State address.

“We have the ninth-largest economy in the nation. We have a triple-A bond rating. We dominate in space industry manufacturing,” Ferguson said.

While the state remains strong, Ferguson said there are challenges, including a $2.3 billion budget gap, crumbling infrastructure, and the affordability crisis, including in the housing sector.

The governor said he has three priorities in this session to get back to the basics.

“Invest in our infrastructure. Make our tax system more fair, and continue our progress on addressing the housing crisis,” he said.

Ferguson wants to spend an additional $3 billion on state transportation, including $1 billion for ferries and $244 million for affordable housing.

“With those dollars we will build and protect thousands of affordable housing units, make it easier for first-time home buyers to enter the market and accelerate the process to build housing,” he said.

Ferguson looks to impose controversial millionaire’s tax

To pay for it all, Ferguson wants to institute a new 10% state income tax on those making more than $1 million per year. It’s become known as the millionaire’s tax.

“Our system takes too much in taxes from hard-working families, and not enough from the wealthy. Washington families in the bottom 20% pay a whopping 13.8% of their total income in taxes, while those whose income is in the top one percent pay only 4.1% of their income. That’s not fair. That’s not right, and that’s why I’m calling for something truly historic — a millionaire’s tax,” Ferguson said.

If passed, the tax would impact only those making more than $1 million per year. Republicans countered that no one should believe the millionaire’s tax won’t eventually trickle down.

“This current administration and legislature have an unquenchable thirst for more taxes. They might start there, but don’t have any illusions that that’s where it’s going to end. It’s an income tax,” Republican Senator Drew MacEwen said.

House Republican Leader Drew Stokesbary echoed that sentiment.

“House Republicans are united against an income tax on anyone because we know that eventually an income tax on anyone will turn into an income tax on everyone,” Stokesbary said.

The governor has big plans and a short session, just 60 days, and a lot to get done.

“We must be bold and continue to make historic investments,” Ferguson said. “I’m confident we are well-positioned to address internal challenges and meet the moment with unity and clarity.”

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