WA Dems ram through millionaire tax bill after 24-hour floor fight

Senate Bill 6346 passed 51-46 after a marathon floor battle that stretched from Monday into Tuesday evening. Senate Bill 6346 imposes a 9.9 percent tax on annual household income above $1 million, a proposal Democrats have branded the “millionaire’s tax,” but critics have demonstrated can be expanded to tax every person living in Washington.

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Seven Democrats joined all Republicans in opposing the bill, but with Democrats holding a 59-39 majority in the chamber, the legislation still advanced despite voters having repeatedly rejected income tax proposals at the ballot box. Business leaders have repeatedly cautioned Democrats against passing the tax.

House Republican Leader Drew Stokesbary blasted the vote as “a betrayal of the people of Washington and a direct attack on our state’s economic competitiveness.”

“For generations, Washington’s lack of a state income tax has helped attract jobs, entrepreneurs and investment, all of which has led to growth and prosperity,” Stokesbary said. “Democrats just took a sledgehammer to that advantage.”

He also warned that despite Democratic assurances, the tax will not stay limited to top earners. “They can pretend this will only ever be a tax on millionaires, but everyone knows how these policies evolve,” Stokesbary said. “Spending will grow, the threshold will drop, the net will widen, and middle-class families will end up footing the bill.”

Republicans introduced most of roughly 80 amendments, attempting either to stop the bill outright or limit its impact. Democrats voted them down. Among the amendments was one from Rep. Amy Walen (D-Kirkland), that would have required a vote of the people to amend the state constitution to allow an income tax. That proposal failed as well.

Rep. Peter Abbarno, the House Republican Caucus chair, said the vote came as Washington families are already being crushed by the cost of living. “Families across Washington are already being squeezed in every direction, and this vote just made a difficult situation worse,” Abbarno said. “At a moment when families are asking Olympia for relief, the Democrat majority instead chose to push through an entirely new tax system.”

Republicans said they offered amendments to lower the sales tax, exempt prepared food and other everyday purchases, protect retirement income, eliminate what they called a marriage penalty in the bill, and shield small businesses and family-owned businesses from unintended fallout. Every proposal was rejected.

Rep. Stephanie Barnard (R-Pasco) warned that the bill undercuts one of Washington’s biggest competitive advantages. “Washington has always been a state that wins by dreaming big,” Barnard said. “But that kind of innovation can’t happen without stability. By locking in a permanent state income tax, the Legislature is trading away the very competitive advantage we’ve spent generations building.”

Barnard said the larger issue is not just the immediate tax on high earners, but the precedent it sets. “The real danger is that history shows us a troubling pattern: an income tax that starts on a few is almost always a precursor to an income tax on everyone,” she said.

House Republican Floor Leader April Connors said Republicans used the extended debate to force a public airing of the bill and put Democrats on the record. “For 24 straight hours, the House Republican Caucus fought relentlessly to protect Washington taxpayers from a state income tax,” Connors said.

She said Republicans proposed amendments to reduce the tax rate, protect farmers and small businesses, exempt military and retirement income, and cut the sales tax so residents would see real relief. “Democrats rejected every single one of those ideas,” Connors said. “That tells you everything you need to know about the priorities of this majority.”

Rep. Travis Couture and Rep. Dan Griffey argued the bill runs directly into nearly a century of Washington court precedent holding that income is property under the state constitution. Because the Constitution requires property taxes to be uniform, they say a graduated income tax is unconstitutional on its face. “For nearly a century, Washington courts have classified income as property,” Couture said. “Our constitution demands that property be taxed uniformly.”

Griffey said the vote showed just how far Olympia Democrats are willing to go to override public opposition. “Washingtonians have spiked an income tax nearly a dozen times,” Griffey said. “Tonight, the majority effectively told the voters: ‘We don’t care what you think.’”

Rep. Matt Marshall, R-Eatonville, said the “millionaire’s tax” label should not reassure anyone. “Today they say it only hits millionaires,” Marshall said. “That’s how every income tax in America started, narrow, targeted, and politically convenient. Then it spreads.” Marshall noted Republicans offered an amendment that would have permanently prevented the tax from expanding beyond millionaires. Democrats rejected that, too. “That tells you everything you need to know,” Marshall said.

When the final vote was gaveled in, Democrats could be heard clapping and cheering loudly in the House wings. Gov. Bob Ferguson, speaking to The Center Square, called the outcome “a good night.” He told The Ari Hoffman Show on Talk Radio 570 KVI in a statement, "I look forward to signing it." The bill will head back to the Senate before Ferguson's desk

“One-party rule has made Washington one of the most expensive states in the country,” Stokesbary said. “Washington deserves leadership focused on making life more affordable, not politicians doubling down on the same tax-and-spend playbook that created this mess.”