(The Center Square) – Washington’s top education official is getting behind majority Democrats push for an income tax on Washington residents who earn more than a million dollars per year.
Unveiled by Democrats this week, Senate Bill 6346, calls for a 9.9% income tax on people making more than $1 million a year starting in 2028.
Office of Superintendent of Public Instruction Chris Reykdal said in a Thursday press conference, lawmakers should pass what Democrats call the “millionaires’ tax,” even if nothing changes about the bill in its current form.
“The Legislature should pass that,” Reykdal said.
Gov. Bob Ferguson said he will not support bill in its current form because he wants more of the revenue collected to fund tax relief for Washingtonians, but Reykdal said it should pass even before details of how the lions share of the expected $3.5 billion a year the income tax would generate, should be spent to reduce property taxes, funding and broadening K-12 education.
Reykdal said Washington families are struggling under crushing property tax bills, which he said ultimately impacts school age children.
His proposal suggests using $1.4 billion a year of income tax revenue for property tax relief, broadening K-12 education by $861 million annually and offering two years of college tuition at $760 million annually.
That last part of the proposal would essentially make college or two years of training post high school free for Washington students.
Reykdal said depending on how much the income tax brings in, there would still be hundreds of millions remaining for other budget priorities.
The Center Square asked Reykdal about his opposition to the federal tax credit program for education, which estimates show could generate more than $730 million for education expenses in Washington on an annual basis.
As reported by TCS, the program allows Washington taxpayers who donate to nonprofit scholarship granting organizations (SGOs) to receive federal tax credits worth up to $1,700. Those donations are pooled and scholarships are then provided to eligible students from families earning up to 300 percent of area median income.
The fund could be used for both public and private school students for supplies, tutoring, technology and transportation, among other things, but Ferguson must opt Washington into the program by Jan. 1, 2026. Otherwise, those tax deduction donations would go to other states that have opted in.
“If Governor Ferguson does not opt our state into the program, Washingtonians basically are going to make that tax credit donation in support of K-12 education in other states,” The Center Square asked. “Why are you opposed to keeping that money here?”
“I want it to go back to Congress because it’s so ill conceived,” Reykdal said. “You have unelected officials who are gonna control potentially hundreds of millions of tax dollars. You’re going to send public tax money to private institutions, potentially.”
The Superintendent said he supports families with children receiving tax credit but suggested that should be done through changes in the tax code.
“Not by the state, picking and choosing kids who are going to get scholarships to fund religious education,” he said. “I don’t think that’s appropriate.”
The federal program allows families to select which school or education expense they desire.
“The bill and its conception, though, was a privatization movement, and the afterthought was, I guess some public-school students might use it for tutoring,” he added. “I just want the state to be able to decide that, and not the federal government.
Vicki Murray, Washington Policy Center’s education center director in a Jan 29 blog post, said Democrats previously supported similar ideas.
“Keeping millions of education dollars in state is exactly what President Obama’s Education Secretary Arne Duncan calls “a no-brainer.”,” she wrote.
Ferguson has stated publicly he has not made a decision about whether or not he will opt the state into the tax credit program for education.
The income tax bill, Senate Bill 6346, is set for a public hearing Friday Feb. 6 at 1:30 p.m. in the Senate Ways and Means Committee.
