Washington has had no income tax on wages for 93 years, and now Democratic lawmakers are trying to redraw the line at $1 million. The sales pitch is for school meals and childcare. The fine print is a political brawl that could end up in court.
What You Should Know
Washington lawmakers are debating a proposal for a nearly 10% annual tax on personal earnings over $1 million, with Democratic Gov. Bob Ferguson signaling support if it reaches his desk. Critics warn it could push high earners, and their businesses, out of state.
The push is part of a broader revival of tax-the-rich politics in blue states, where affordability pressures and budget math are colliding with an old fear that the wealthy can simply pack up and take jobs and investment with them.
Washington’s $1 Million Line Is Becoming a Political Weapon
According to The Associated Press, Washington’s plan would impose a nearly. nal earnings above $1 million, with supporters pitching the revenue to fund free K-12 school meals, childcare services, a family tax credit, and 10% tax on perso sales tax on certain personal care items.
The timing is tight, too. The AP reported the state House approved the measure after an all-night session, and it headed back toward the Senate, with Ferguson indicating support if lawmakers send it before the Legislature’s scheduled adjournment on March 12th, 2026.
Democrats argue the state’s current setup leans hard on working people through consumption taxes, and they are framing the new levy as a way to shift the burden upward. House Majority Leader Joe Fitzgibbon, a Democrat, told the AP, “We don’t need to be a tax haven.”
Republicans, and some business owners who would be hit, are answering with the kind of threat that turns a tax debate into a power test. Colin Hathaway, a millionaire roofing businessman, warned the AP, “There’s a strong incentive to not be doing business here,” saying an added tax could force him to leave the state.
Blue States Want Revenue, Critics Hear a Moral Project
Washington is not alone. The AP reported that Massachusetts has already implemented a surtax on income over $1 million, and that the idea has spread across other blue states considering higher taxes on top earners, including Rhode Island, which is weighing a budget proposal backed by Democratic Gov. Dan McKee.
California is where the ambition gets louder. The AP reported that advocates are working on a ballot measure that would impose a one-time 5% tax on the assets of people with a net worth of $1 billion, with backers saying it could help offset federal health funding cuts.
Why the Fight Is Spreading, and Why Courts Are Lurking
Washington’s twist is legal history. The AP noted a state Supreme Court decision from nearly a century ago knocked down an income tax, which is why supporters are already bracing for lawsuits and a potential ballot fight if the new tax becomes law.
Meanwhile, the national map is pulling apart. The Tax Foundation tracks a growing split between states seeking higher taxes on high earners and states trying to cut income taxes, or avoid them entirely.
What happens next in Washington is less about a slogan and more about a sequence: Senate action, a governor’s signature, and then the first serious test of whether a $1 million threshold is a revenue tool or a relocation trigger. Either way, other statehouses are watching the precedent as closely as the dollars.
