SB 6346 proposes a 9.9% tax rate on Washington adjusted gross income exceeding $1 million
Brett Davis
The Center Square Washington
Gov. Bob Ferguson on Friday morning indicated that he will sign a revised version of proposed income tax legislation – that is, assuming Senate Bill 6346 passes the Legislature, which looks likely at this point.
SB 6346 proposes a 9.9% tax rate on Washington adjusted gross income exceeding $1 million.
“I’ve said from the beginning of the discussion around the Millionaires’ Tax: Any bill I sign must send a significant percentage of that revenue back to Washington families and small business owners to make life more affordable. We must significantly expand eligibility for the Working Families Tax Credit, and reduce taxes on small business owners,” the governor said in a statement.
“I’m glad to say the latest floor amendment to the bill achieves these critical goals, and will help make our state more affordable. I will sign this version of the bill.”
Ferguson was referring to a striker amendment to SB 6346 by Rep. April Berg, D-Mill Creek.
A striker amendment, or striking amendment, is a procedural tool that removes the entire text of a bill – everything after the title – and replaces it with new, often substantially different language.
“The current proposal makes the Working Families Tax Credit available to 460,000 additional households,” Ferguson said. “That’s money straight back into the pockets of working families. The Working Families Tax Credit is an existing program in which qualifying families receive a check from the State for an amount between $300 and $1,300.”
Other changes to the revised income tax proposal include exempting over-the-counter medicines from the sales tax and sending 5% of revenue from the income tax to the Fair Start For Kids Account, which aims to make child care and early education more affordable and accessible.
Only a few days ago, Ferguson sounded less than optimistic about the controversial income tax passing the Legislature, with media reports that the governor had told supporters and donors in an email that getting the bill just right could mean “coming back next year to finish the bill in a longer session.”
Income tax supporters like Ferguson and majority party Democrats view it as a necessary step toward balancing a regressive tax system and funding services. Critics, including Republican lawmakers and business leaders, argue it’s a money grab that will hurt the economy, trigger capital flight and eventually expand to middle-income earners.
SB 6346 has cleared the Senate and is set for a vote in the House.
Time is a factor, with the 60-day session set to end on March 12.
This report was first published by The Center Square Washington.
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