‘It’s better to grow the pie than to fight about slicing it’: Lawmakers hear public testimony on ‘millionaire tax’ proposal

At the first public hearing for SB 6346, Jed Fowler — president of construction supply company HD Fowler — told members of the state Senate Ways and Means Committee he would be subject to the tax and says he’s willing to pay it.

“Investing in our communities is fundamentally pro-business. A business can only be as strong as the community it serves,” he said. “It’s better to grow the pie than to fight about slicing it. I’m willing to pay this tax. I should pay this tax. Others like me should pay this tax.”

Senator challenges business owner: ‘Why don’t you just do it voluntarily?’

Republican State Senator Chris Gildon challenged Fowler.

“What’s stopping you from paying the tax right now?” he asked. “I mean, you could without having legislation mandated for you. Why don’t you just do it voluntarily?”

“Because I want to be a part of a society that asks and creates a progressive revenue base to provide prosperity for all Washingtonians,” Fowler responded. “A system like that provides, frankly, more success for the business I run than lowering my tax rate.”

Brent Frei, founder of the agricultural technology company TerraClear, is opposed to the bill. He told lawmakers he has started four successful businesses in Washington.

“These companies only succeeded because the thousands of people in them were incredibly hard-working and owners in the business,” he said. “Their motivation and their choice to work hard and take risks was always for the promise that if we built something truly useful and innovative, that someday there would be a large financial reward. Washington state is taking away that incentive from people that power this economy, and these people will go elsewhere to keep what they’ve earned.”

The proposal would impose a 9.9% income tax on people making more than $1 million a year.

‘I think this is such an important bill’: King County executive backs tax

King County Executive Girmay Zahilay supports the measure.

“I think this is such an important bill for many reasons, including providing more balance to our state’s regressive tax code, lowering taxes on working families and small businesses, and helping our state fund critical services like health care, education and child care,” Zahilay said.

Former state Attorney General Rob McKenna testified against the bill.

“Under our state constitution, we can have a state income tax if it follows the rules for property taxes. It must be uniform and no higher than 1% per year,” McKenna said. “If this legislature wants a progressive income tax, it should send an amendment to the voters for their decision. It shouldn’t pretend that the Constitution is not clear.”

Friday’s hearing came one day after Washington State Schools Superintendent Chris Reykdal called on lawmakers to pass the bill and put revenue from it into education and into property tax relief.

As of late Friday afternoon, no public hearing had been scheduled for the companion bill, HB 2724.

Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.