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Dear Friends and Neighbors,
Thank you to all those who joined my fellow 17th District lawmakers and me for our virtual town hall last night. We appreciate your interest in state government and are very grateful for your questions, comments and input during this meeting.
One of the most pressing topics of conversation was the majority party’s proposal to establish a state income tax in Washington. Senate Bill 6346 would create a 9.9% tax on income above $1 million beginning in 2028, including married couples whose combined income reaches that threshold. It is projected to generate $3–4 billion per year.
While it is marketed as a “millionaires’ tax,” the structure would affect many small business owners who report business income on their personal tax returns. It would also negatively impact Washington in several other ways, including added financial strain on families who are already struggling with the state’s affordability crisis. There are also several other reasons to oppose this tax proposal.
- Pathway for future tax expansion. Establishing a new income tax, even on a limited group, makes it easier for future legislatures to broaden it to more taxpayers over time and reshape Washington’s long-standing tax structure.
- Negative impact on small businesses and job growth. Mny small and mid-sized businesses file taxes through personal income, meaning a high-rate income tax may function as a tax increase on owners, potentially discouraging hiring and expansion.
- Legal uncertainty. Washington courts have historically treated income as property, so adopting an income tax could invite litigation, added costs, and prolonged uncertainty.
- Hurts economic competitiveness. Washington’s lack of a personal income tax has long been a key advantage in attracting workers, investors, and employers.
- Risk of taxpayer outmigration. Higher earners and investors may choose to relocate to lower-tax states, potentially reducing in-state investment and economic activity.
- Unstable revenue. Taxes heavily reliant on high earners can fluctuate significantly during economic downturns, making state budgeting less predictable.
- Long-term negative economic impacts. Higher marginal tax rates may dampen investment, innovation, and the creation of high-wage jobs.
Tell the Legislature How You Feel About This Proposal
SB 6346 has passed the Senate with all Republicans and three Democrats opposing the policy. It is currently scheduled for a public hearing before the House Finance Committee on Tuesday, February 24, at 8:00 a.m. This is your chance to make your voice heard. Join the thousands who have already shared their opinion.
There are several ways for you to participate. You can testify in person in Olympia, remotely via Zoom, or by signing in on the legislative website to register your position as “pro” or “con” without testifying. Use the links below to participate:
Register to testify in-person or remotely
Submit your position for the legislative record
I encourage you to weigh in and let lawmakers know your perspective on this proposal. In my view, the challenge facing our state is not a lack of revenue, but a pattern of increased spending. Research from the Washington Policy Center highlights potential constitutional concerns with a state income tax. It warns it could negatively impact job growth, economic investment, and Washington’s long-standing advantage as a no-income-tax state.
I remain committed to opposing tax increases that place additional financial strain on families, workers, and small businesses and make it harder to live and do business in Washington.
Sincerely,
David Stuebe
