Washington's proposed "millionaires tax" is a focal point of discussion as Governor Bob Ferguson prepares to sign the latest version of the legislation. The initiative, which imposes a 9.9% tax on taxable income exceeding $1 million, is set to take effect on January 1, 2028. It has sparked significant debate among the state's business and technology sectors.
In his statement, Ferguson emphasized the importance of returning revenue to families and small businesses, advocating for the bill's passage to enhance affordability across Washington. The updated proposal includes provisions to expand the Working Families Tax Credit, maintain sales tax exemptions on essential items, support free school meals, and allocate 5% of revenues for childcare and early education.
Despite the bill's potential benefits, it faces opposition from tech leaders who argue that it could deter high earners and startup founders from remaining in the state. A recent letter from a group of AI professionals urged Ferguson to reconsider, citing concerns that higher taxes could drive talent and investment away. However, supporters assert that the tax is necessary to address the state's regressive tax structure.