Washington Senate Democrats on Monday passed Senate Bill 6346, approving a 9.9% tax on income above $1 million while rejecting amendments aimed at limiting the proposal and preserving a public vote.
Amendment 696, which backers said would ensure the tax applies only to millionaires, failed before final passage. More than 80,800 people signed in on the bill, with over 75% registering opposition, a level critics describe as unprecedented for public sign-ins.
Critics point to past fiscal controversies, including a previously reported $15 billion surplus, missing COVID relief funds, unemployment fraud losses, and costly state technology overruns, as evidence that the state should focus on spending discipline rather than new taxes.
At the same time, Democratic lawmakers have reduced funding in Medicaid, childcare, and domestic violence prevention programs, while passing the largest tax increases in state history and raising fees on everything from Discover Passes to hunting and fishing licenses.
SB 6346 also raises legal questions. Initiative 2111, signed by more than 450,000 people and approved by the Legislature two years ago, prohibits a statewide income tax. Opponents argue the new measure conflicts with both the initiative and Washington’s constitutional requirement for tax uniformity.
“This income-tax bill clearly goes against our state constitution as well as 90-plus years of legal precedent. The Democrats passed it anyway,” said Sen. Chris Gildon, R-Puyallup and Senate Republican budget leader. “If the supporters were truly committed to limiting this tax to ‘high earners,’ they would propose changing the state constitution.”
Gildon added that the bill “could be converted into a universal income tax by changing just a few words” and called it “the largest tax increase in our state’s history at a time when Washington is already bringing in record revenue.”
During debate, Republicans also sought to preserve voters’ ability to challenge the measure through referendum. That amendment was rejected.
“Washingtonians deserve a clear, direct vote on something this important and expensive,” said Sen. Nikki Torres, R-Pasco. “The majority rejected our amendment. It’s undemocratic how they are shutting the public out.”
Torres also questioned whether the proposal would address affordability concerns. “This tax is unnecessary. Washingtonians need to know this will not make life more affordable next year or the year after,” she said. “It does nothing to reduce the regressive taxes that hit working families the hardest.”
The vote comes as Senate Majority Leader Jamie Pedersen acknowledged that some residents may be re-domiciling due to tax policy. At the same time, lawmakers are advancing Senate Bill 6347 to roll back last year’s estate tax increase, which raised the top rate to 35%. Pedersen described that rollback as “an olive branch.”
The Association of Washington Business recently reported that more than half of surveyed employers are considering leaving or pausing expansion due to tax burdens.
Republicans contend SB 6346 represents another step in what they describe as escalating tax policy. “If we want job growth, economic opportunity, and long-term prosperity,” Gildon said, “this is not the way forward.”
