The future of Washington’s “millionaires tax” lies in voters' hands.
If approved, Initiative 645 would repeal a law that introduces a 9.9% tax on annual household income that exceeds $1 million. The tax was passed this year and is set to start on income earned in 2028, with the first taxes due in 2029. The initiative, backed by Let's Go Washington, will appear on ballots Nov. 3.
Former U.S. Rep. Jaime Herrera Beutler will argue in favor of the initiative, and April Sims, president of the Washington State Labor Council, AFL-CIO, will argue against it. The pair will face off in an hourlong debate at 8 p.m. Thursday, Oct. 8. You can watch the livestream online at seattletimes.com or on television on KONG, the affiliate station of KING 5.
Seattle Times politics reporter Jim Brunner and KING 5 evening news anchor Joyce Taylor will moderate the conversation.
If the initiative fails, the state is expected to collect $3.7 billion through the tax from fiscal year 2030. While $1 billion would go toward eliminating taxes on businesses and individuals, the other $2.7 billion will support the state’s operating budget, which pays for education, prisons, healthcare and other services. The state’s fiscal year begins on July 1 each year and ends June 30 the following year.
Supporters of the initiative said the tax could harm businesses and push people out of the state, while those who want to keep it argue the measure can make the state’s tax system more fair for low-income Washingtonians.
The millionaires tax has also encountered a slew of legal challenges, including a lawsuit filed by opponents in April that argued the tax was unconstitutional because it violated a 1933 court decision, labeling income as property.
Another lawsuit filed by Let’s Go Washington aimed to change the wording used to describe the initiative. In an impact statement, the state alleged repealing the tax would cut funding for education, healthcare and other services, but supporters of the initiative said the statement is speculative and biased.
A third lawsuit filed by open-government advocate Arthur West failed last month. It argued that government-written language in a citizen initiative was unconstitutional.
West continued to advocate for the statement's removal by pushing a motion for an emergency injunction to prevent the statement from appearing on ballots. Washington's Supreme Court voted 4-4 on the motion but ultimately denied it with one justice sick and unable to vote on the matter.
Visit seattletimes.com at 8 p.m. Oct. 8 to watch the debate.
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