Thousands of residents gathered in Olympia, Washington, on February 3, 2023, to express their views on the proposed “millionaires tax.” The legislation, designed to impose a 9.9% income tax on individuals earning over $1 million annually, is progressing towards a crucial vote that could send it to the governor’s desk.
Outside the legislature, protesters voiced strong opposition to the bill during a rally. Paul Glumaz, a vocal opponent of the tax, articulated concerns about potential negative consequences, stating, “There’s tremendous concern that we’re starting on a slippery slope of taxing.” Inside, supporters packed the House committee room, emphasizing the need for tax reform. April Sims, president of the Washington State Labor Council, argued, “Our tax code is broken. It’s a century-old artifact that has failed to build a stable foundation.”
The proposed tax would allow Washingtonians to keep the first $1 million of their income tax-free, with a 9.9% rate applied only to earnings beyond that threshold. If approved, the tax would take effect on January 1, 2028, with the first payments due in April 2029.
This legislation is significant as it marks a potential shift in Washington’s tax structure, which has historically prohibited income taxes at both state and local levels. The current proposal is part of a revised code that could change at any time.
The next hearing regarding the bill is scheduled for Friday, where an executive session will allow for potential amendments or a vote. Should it pass through the committee, it will advance to the House floor for what could be its final vote before reaching Governor Jay Inslee’s desk.
Meanwhile, other news from the region includes disruptions in air travel. An Alaska Airlines flight returning from Wichita to Seattle had to turn back shortly after takeoff due to a passenger’s overheating cell phone.
In local law enforcement, a Seattle police officer was terminated following an investigation that uncovered violations of departmental policies. Additionally, a reported protection order violation in Gig Harbor escalated into a violent incident involving a stabbing and gunfire, resulting in fatalities, although no tourists were among the deceased.
As Washington considers this significant tax reform, the outcome could have lasting implications on the state’s economic landscape and its approach to taxation.
