Washington Considers 'Millionaire Tax' Proposal

Opponents raise concerns about broader income tax implications

Feb. 3, 2026 at 9:55pm

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Washington state is considering a new proposal to implement a 9.9% income tax on individuals earning more than $1 million per year. The measure, which would be the first state income tax in nearly 100 years, is projected to generate $4 billion in annual revenue. While a majority of residents support the tax, Republican lawmakers have raised concerns about the long-term implications of introducing an income tax, arguing it could lead to broader taxation in the future and discourage major corporations and entrepreneurs from remaining in or moving to the state.

Why it matters

The proposed 'millionaire tax' is a significant policy shift for Washington, which has not had a state income tax since 1930. The debate highlights the ongoing tension between increasing revenue for essential services and maintaining the state's reputation as a business-friendly, tax-free environment.

The details

The majority of the revenue from the proposed 9.9% income tax on individuals earning more than $1 million per year would go into the general fund and be put into essential services. While a 2025 independent poll indicates 61% of residents support the tax, Republican lawmakers have raised concerns that the million-dollar threshold is a branding effort that could lead to broader taxation in the future, and that the tax could discourage major corporations and entrepreneurs from remaining in or moving to the state.

  • The measure is currently being considered in the Washington state legislature.

The players

Bob Ferguson

The governor of Washington, who has stated he will only fully support the bill if more of the revenue is returned to working families.

John Braun

A Republican state senator who argued that the million-dollar threshold is a branding effort that could lead to broader taxation in the future.

Jim Walsh

A Republican state representative who suggested the tax could discourage major corporations and entrepreneurs from remaining in or moving to the state.

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What they’re saying

“A significant percentage of these revenues must go back into the pocket of Washingtonians.”

— Bob Ferguson, Governor

“It happens to have a higher limit right now, but there's no reason that limit won't change in the future and that's exactly what we've seen in states that have put an income tax in place in the last couple decades.”

— John Braun, State Senator

“It's not so much that we'll lose Microsoft or Amazon or Boeing, although we might. It's that the next Amazon isn't going to be in Seattle. It's going to be Austin, Texas or Orlando, Fla. That's what we have to protect against.”

— Jim Walsh, State Representative

What’s next

The proposed 'millionaire tax' bill is currently being considered in the Washington state legislature. The governor has stated he will only fully support the bill if more of the revenue is returned to working families, and the debate is ongoing between supporters and opponents of the measure.

The takeaway

The debate over the proposed 'millionaire tax' in Washington highlights the ongoing tension between increasing revenue for essential services and maintaining the state's reputation as a business-friendly, tax-free environment. The outcome of this proposal could have significant implications for the state's economic competitiveness and the distribution of the tax burden.