income tax

It would be the state's first-ever income tax. The Senate's final approval came after a historic 25-hour debate in the House.

In a 51 to 46 vote with four Democrats dissenting, the bill now has a clear path to the governor’s desk. If signed into law, it would become the first income tax for the state of Washington.

Gov. Ferguson had previously wavered on his support in the bill’s earlier form, saying the legislation did not include enough to support working families as written.

In a letter to Gov. Bob Ferguson this week, a handful of founders, engineers, and executives say the tax would stifle tech talent and innovation in the region.

The Washington State House Finance Committee made revisions to a proposed income tax after a group of progressive lawmakers said the previous version gave away too much while not doing enough for working families.

The "millionaires tax" making its way through the state Legislature is similar to "tax the rich" policies in a handful of other states across the country.

If passed, the historic measure would slice almost 10% off individual incomes over $1 million.

The state Senate would use about $2 billion from the tax on individual incomes over $1 million to balance the budget starting in 2029, while the House proposed using less.

Democrats want to tax personal income over $1 million. Gov. Bob Ferguson says lawmakers’ initial plan doesn’t offer enough tax relief for lower earners and small businesses.

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