‘Millionaire tax’ clears House committee despite Republican pushback

Washington’s first-ever income tax cleared a key House committee Friday morning on a 9 to 6 vote.

Republicans tried again, but failed to stop the bill from advancing. It passed the House Finance Committee despite a warning from Puyallup Republican Representative Cyndy Jacobsen.

“Capital flight is not a myth. People who make this kind of money are able to leave; they often have domiciles in other states that they can just change their address to,” she said.

Supporters, like Tacoma Democratic Representative Sharlett Mena, argued a tax on high-income earners is about fairness.

“It does so by addressing a fundamental inequity in our tax system, one that currently asks working families to contribute a greater share of their income than the ultra wealthy,” she said.

The highly contentious bill would impose a 9.9% tax on Washington residents earning more than $1 million, beginning Jan. 1, 2028.

Bellingham Democratic Representative Alex Rammell believes Washington needs to tax income over $1 million.

“It’s necessary for us to balance our budget over the next four years. It’s necessary for us to fully fund our basic education, higher education,” he said.

Republican Representative Ed Orcutt warned that the tax will not work.

“There is no combination of taxes that can keep up with the legislature that continually overspends its revenue,” he said.

Republicans’ push for public vote fails

Republicans tried and failed to require a public referendum.

“I see it in my inbox every day and probably every hour of every day that people are opposed to any form of an income tax,” Orcutt said.

Mena argued that times have changed and the tax is needed now.

“This bill represents a significant step towards right-sizing our upside-down tax code and moving closer to a system that reflects the values of my district in the 29th,” she said.

In the end, the committee struck down a proposal to put the tax before voters.

The bill now heads to the House floor, where a vote could come next week.

Read more of Aaron Granillo’s stories here.

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