Highly debated ‘millionaire tax’ passes House

A highly debated tax on millionaires passed the Washington State Legislature Tuesday.

Senate Bill 6346 passed after a 24-hour debate on the House floor, according to Rep. Stephanie Barnard.

The bill would impose a 9.9% tax on Washington residents with more than $1 million in annual income.

Barnard stated that the tax grants the same $1 million deduction to single filers and married couples, creating a marriage penalty.

“The passage of this legislation comes despite a century of state court precedent requiring the uniform taxation of property, which has historically been interpreted to include income,” Barnard said in a statement. “By establishing the bureaucratic framework and tax code for an income tax, the bill paves the way for broader taxation on working families in the future.”

‘Millionaire tax’ passes Senate mostly on party-line vote

The controversial tax passed the Senate last month. Lawmakers passed the bill mostly on a party-line vote, with the majority of Democrats in favor. Democratic Senator Lisa Wellman was among them.

“This is not about penalizing wealthy people, wealthy Washingtonians. It is simply asking for proportionality in our tax structure at a time when the gap between rich and poor has never been greater,” Wellman said.

Republican Senator Chris Gildon argued the bill opens the door for a tax down the road on the middle class.

“If this bill passes today, future legislatures can easily come back and change the threshold from $1 million down to $500,000 to $250,000; they can apply it to anyone that they want to,” Gildon said.

Ferguson says he’ll sign revised version

Last week, Washington Governor Bob Ferguson said he would sign a revised version of the tax after lawmakers added an amendment aimed at sending more of the revenue back to families and small businesses.

The striking amendment expands eligibility for the Working Families Tax Credit, which currently reaches 460,000 households and provides qualifying families with checks ranging from $300 to $1,300. It also reduces taxes on small business owners.

Ferguson said this amendment is part of a broader effort to make life more affordable for Washingtonians and addresses issues such as funding for free school meals and additional sales tax exemptions.

Senate Republican Leader John Braun of Centralia argued the bill ignores the will of voters.

“Washingtonians have voted down an income tax 11 times,” he said. “That should mean something to the people in charge. Instead, the governor is signaling he’ll sign a bill that moves us toward the very thing voters have repeatedly rejected.”

The bill now heads back to the Senate to concur with House amendments before heading to Ferguson’s desk.

Contributing: Frank Lenzi and Luke Duecy, KIRO Newsradio; Julia Dallas, MyNorthwest