Washington governor supports new millionaire-only state income tax proposal

John Braun, Washington State Senator for the 20th District
John Braun, Washington State Senator for the 20th District
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Washington State Governor Bob Ferguson has announced his support for implementing a state income tax that would apply to individuals earning more than $1 million annually. This move, if enacted, would mark the first time Washington imposes an income tax. Ferguson noted that even if the measure is approved this year, revenue from the tax would not be collected until 2029 due to expected legal challenges.

The Washington Constitution currently prohibits a graduated income tax. Any attempt by lawmakers to pass such a tax is likely to be challenged in court. Senate Democratic leadership has indicated that part of their strategy involves having the Washington State Supreme Court reconsider how income is classified under the Constitution.

In 2023, Democrats passed a capital gains tax, which was upheld after courts reclassified it as an “excise tax” rather than an income tax. This legal precedent is now being used as justification for further efforts toward an income tax.

Senator John Braun expressed strong opposition to any new income taxes in Washington. “To be clear: I oppose any attempt to impose an unconstitutional income tax in Washington. Republicans in both the House and Senate will fight this because Washingtonians have been crystal clear—they do not want a state income tax. Period,” Braun stated.

He pointed out that voters have rejected proposals for an income tax more than ten times and cited Initiative 2111, passed in 2024, which permanently bans personal income taxes at both state and local levels.

Some residents have questioned whether a state income tax might replace existing sales taxes, similar to Oregon’s system. However, there are no plans from Democratic lawmakers to eliminate sales taxes; instead, both taxes would coexist under current proposals.

Braun also addressed concerns about state spending: “Washington doesn’t have a revenue problem—it has a spending problem.” He noted that despite significant increases in the operating budget—now at $77 billion—persistent issues like homelessness and housing shortages remain unresolved.

A commonly cited claim among Democratic leaders is that Washington has the most regressive or “upside-down” tax structure nationally. Braun disputed this characterization by referencing recent research published by professors from Princeton University and the University of Minnesota along with Federal Reserve economists through the National Bureau of Economic Research (NBER). According to Braun:

“A new economics paper by professors from Princeton, the University of Minnesota, and economists at the Federal Reserve, published by the National Bureau of Economic Research (NBER), reached a very different conclusion.”

“Instead of ranking Washington as worst-in-the-nation, the NBER study found that Washington’s overall tax-and-spending system is essentially middle-of-the-pack — about 23rd nationally.”

The NBER study differs from previous analyses by including benefits received alongside taxes paid and examining effective rates across all incomes rather than focusing solely on top earners or high-income-tax states. The research concluded that when considering both sides—taxes and benefits—Washington does not stand out as unusually regressive or unfair compared to other states.

Braun also highlighted another finding from the NBER paper: “People at all income levels tend to move away from states with more progressive tax systems… States with sales and property taxes tend to have lower average tax rates.”

On juvenile rehabilitation facilities, Governor Ferguson’s proposed budget includes nearly $12 million for Green Hill School and Echo Glen amid ongoing issues with overcrowding linked to policies allowing some offenders up to age 25 to remain at youth facilities before transfer to adult prisons. Braun called for reforms including transferring certain adults earlier and requiring staff body cameras but said legislative action on these proposals stalled last year.

Braun encouraged constituents who oppose new taxes or wish to participate in government processes—including testifying at hearings—to contact their representatives or take part directly during bill discussions.

Information was also provided about opportunities for students aged 14–16 interested in serving as pages during legislative sessions—a program described as one of the best civic education experiences offered by any state legislature.



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