Washington State Inches Toward Imposing Income Tax on Millionaires

The Washington State Senate took a big step toward a state income tax Monday, voting 27-22 in favor of Senate Bill 6346. The measure, if enacted, would impose a 9.9% tax on individual income exceeding $1 million, marking a big shift in the state's tax policy—despite decades of voter rejection of such taxes and specifically an income tax.

A STEPPING STONE TOWARDS AN INCOME TAX FOR EVERYONE

Many residents think the bill's passage signals a turning point in Washington’s tax landscape, which has long been resistant to income taxes.
However, opposition remains strong among Republicans and some Democrats. Senate Minority Leader Sen. Mark Schoesler of Ritzville was among the 18 Republicans and three Democrats who voted against the bill. Schoesler warns the measure could serve as a stepping stone toward income tax hikes on all residents.

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REPUBLICANS DON'T TRUST THE TAX SPONSORS

“The bill’s proponents say it would only tax people making more than a million dollars a year, but you can almost guarantee Democrats will come back and lower the income-tax threshold once the people initially paying this new income tax take their money and move out of Washington,” Schoesler says during a floor speech.

THE MONEY RAISED GOES TO THE GENERAL FUND

He also criticized the bill for lacking specific information on dedicated funding for important state programs like K-12 education or healthcare. “Nowhere in this bill does any section dedicate one penny to those causes that many people are very, very supportive of,” Schoesler added. Instead, he says, the revenue would likely be funneled into the state’s general fund, which can be allocated for a wide range of purposes.

OVERRIDING A PREVIOUS ATTEMPT TO STOP AN INCOME TAX

If enacted, SB 6346 would override Initiative 2111, passed by the Legislature in 2024 with bipartisan support, which explicitly banned state and local income taxes in Washington. The bill now moves to the House for further consideration, setting the stage for a contentious debate over the future of taxation in the Evergreen State.