‘Unthinkable’ shift: How WA Democrats moved left enough to pass the state’s first income tax

Washington lawmakers made history this session by passing the state’s first-ever income tax, capping off a legislative session marked by marathon debates and a notable leftward shift among the Democratic majority.

The state Senate gave final approval Wednesday to the so-called “millionaires tax,” which imposes a 9.9% tax on income exceeding $1 million annually. Governor Bob Ferguson has indicated he will sign the measure into law.

The bill’s passage came after a grueling 24-hour debate on the House floor — the longest in state history.

“That was really a pretty impressive piece of endurance,” said Paul Query, who covers the Legislature for the Washington Observer on Substack. “They actually doubled up the record.”

Democrats split on whether to keep revenue or return it as tax relief

Query said the extended debate revealed two distinct conflicts: one between Democrats and Republicans over whether to impose an income tax at all, and another among Democrats about how to spend the projected $3 billion to $4 billion in annual revenue.

“There’s an argument about, you know, should the money be preserved to pay for state government costs, which are expected to increase substantially in the future, or should it be returned to the people in the form of tax relief elsewhere in the tax system,” Query said. “For the most part, the keep-the-money crowd won the night. There were a lot of amendments to redistribute the money that were defeated.”

The most significant change lawmakers approved was sunsetting some sales taxes on services that were raised last year. Those taxes had unintentionally clawed back money the state had given to school districts.

“Everybody thought that was kind of an unintended consequence, and so they rolled that back,” Query said. “But in terms of really material tax relief for middle-class Washingtonians, there’s not a lot of it.”

The new tax faces an uncertain future. Opponents are weighing ballot measure campaigns to repeal it, though Query said there’s debate about timing — whether to pursue repeal this year during midterm elections or wait until next year.

A legal challenge is also expected to reach the state Supreme Court, where five of nine seats are on the ballot this year.

Education cuts, data center tax break also part of session

Beyond the income tax, lawmakers approved cuts to education spending that drew fierce Republican opposition, particularly because many affected districts are in rural, Republican-leaning areas. Education accounts for more than 40% of the state budget.

A proposal to impose strict regulations on data center development failed this session but is expected to return next year. A related measure eliminating a tax break for data centers remains in the final budget.

For Query, who began covering the Legislature for the Associated Press in 2001, this session represented a remarkable transformation in state politics.

“Just the willingness to go to the income tax and the really substantial shift to the left among the Democratic majority,” he said. “When I arrived here in 2001, that kind of thing would have just been unthinkable. Even sort of mentioning it, or filing a bill to do something like that, would have been tantamount to political suicide in most parts of the state.”

The session concludes on Thursday, with Ferguson expected to sign the income tax bill in the coming weeks.

Manda Factor is the host of “Seattle’s Morning News” on KIRO Newsradio. Follow Manda on X and email her here. 

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