Washington State Considers Controversial Income Tax Bill

Proposed 9.9% tax on income over $1 million faces public hearing and opposition

Feb. 6, 2026 at 9:31pm

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The Washington state legislature is considering Senate Bill 6346, a proposed 9.9% tax on income over $1 million. The bill has drawn over 52,000 signatures in opposition and 14,000 in support ahead of a public hearing on Friday. Proponents argue the tax is necessary to rebalance the state's regressive tax system, while opponents warn it could lead to capital flight and harm the state's economic climate.

Why it matters

The proposed income tax bill is controversial, as Washington state has not had a personal income tax since a 1933 state Supreme Court ruling deemed a graduated income tax unconstitutional. The bill's passage could set up a legal battle over the constitutionality of the tax.

The details

Senate Bill 6346 would impose a 9.9% tax on income over $1 million, generating an estimated $3.7 billion annually for education, healthcare, and tax credits. Proponents argue the tax is needed to rebalance the state's regressive tax system, while opponents warn it could drive businesses and high-income residents out of the state.

  • The public hearing on Senate Bill 6346 is scheduled for Friday, February 7, 2026 at 1:30 PM.
  • As of Friday morning, over 52,000 Washingtonians had signed in 'con' on the bill, while just over 14,000 had signed in 'pro'.

The players

Senate Bill 6346

A proposed 9.9% tax on income over $1 million in Washington state.

Rachel Smith

Executive director of the Washington Roundtable, a business advocacy group that has not yet taken a position on the income tax bill.

Bob Ferguson

The governor of Washington state, who is a supporter of the proposed income tax.

Heather Andrews

The western regional director for Americans for Prosperity, an organization that strongly opposes the income tax bill.

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What they’re saying

“Gov. Ferguson's idea to place heavy burdens on families and small businesses through higher income taxes will only risk pushing entrepreneurs, innovators, and investors to look elsewhere, weakening the economic engine that has driven decades of growth in Washington.”

— Heather Andrews, Western Regional Director, Americans for Prosperity

“The Roundtable has no position on that. We have not worked on that. We have not spoken to that. That is not a matter for which we will be involved in any way, shape or form. That's between the Legislature and the State Supreme Court.”

— Rachel Smith, Executive Director, Washington Roundtable

What’s next

The judge in the case will decide on Tuesday whether or not to allow the income tax bill to proceed.

The takeaway

The proposed income tax bill in Washington state is highly controversial, with strong opposition from business groups and concerns about its constitutionality. The outcome of the public hearing and any legal challenges will have significant implications for the state's tax system and economic climate.