(The Center Square) – More than 52,000 Washingtonians had signed in “con’’ as of 8 a.m. Friday morning, ahead of a 1:30 p.m. Senate Ways & Means Committee public hearing on Senate Bill 6346, a 9.9% tax on income over $1 million. Just over 14,000 have signed in “pro” on what has been dubbed the “millionaire’s tax.”
Opponents of the proposed tax say that while it may start out as a tax only on millionaires, it will eventually expand to a tax on all Washingtonians’ income.
Proponents of the tax justify it as a necessary step to rebalance Washington’s regressive tax system, aimed at reducing the tax burden on working families while increasing it for the top 1%. The proposal seeks to generate approximately $3.7 billion annually for education, health care and tax credits.
Ahead of Friday afternoon’s public hearing, The Center Square spoke with Rachel Smith, president of the Washington Roundtable, a business advocacy group that has not yet taken a position on the income tax bill.
During a Tuesday press conference – the day the income tax was introduced as legislation – Gov. Bob Ferguson was asked about business groups he has worked with in crafting an income tax bill that could withstand legal challenges.
A 1933 state Supreme Court precedent deemed a graduated income tax unconstitutional.
Ferguson, a supporter of the tax, specifically mentioned working with legal counsel at the Washington Roundtable. Smith told The Center Square that the Washington Roundtable has not provided legal advice about the bill.
“The Roundtable has no position on that,” Smith said. “We have not worked on that. We have not spoken to that. That is not a matter for which we will be involved in any way, shape or form. That’s between the Legislature and the State Supreme Court.”
The Center Square pressed Smith on what it would take for the organization to get on board with the income tax, considering the potential capital flight and business impacts.
“That is an unanswered question at this point. The bill that we see today is a starting place, not an ending point for us,” she explained. “We need to see more of the business community’s concerns addressed and priority provisions included. That will be our expectation if the Legislature’s going to advance a proposal of this magnitude. This is extremely consequential for Washington state. We have not taken a position on it, and the days and weeks to come will determine whether we will.”
Heather Andrews is the western regional director for Americans for Prosperity. She emailed The Center Square a statement detailing the organization’s strong objections to the income tax bill.
“Gov. Ferguson’s idea to place heavy burdens on families and small businesses through higher income taxes will only risk pushing entrepreneurs, innovators, and investors to look elsewhere, weakening the economic engine that has driven decades of growth in Washington,” she said. “Washington has a spending problem that will not be fixed by punishing hardworking small employers and families with a tax hike. We urge the Governor and state legislators to oppose any proposed income taxes that will harm the state’s economic climate and instead focus on policies that will keep businesses and investments in Washington while strengthening the state’s long-term economic future.”
This is a developing story.
