Opinion: Senate shenanigans – Income tax debate, double-standards

Elizabeth New writes that Senate Bill 6346 would impose a 9.9% tax on income above $1 million and is likely headed for a legal challenge if approved by the House.
Elizabeth New writes that Senate Bill 6346 would impose a 9.9% tax on income above $1 million and is likely headed for a legal challenge if approved by the House.

Elizabeth New says that if the Democratic-dominated House of Representatives goes along with the Senate, supporters and opponents in both Houses then expect a legal battle

Elizabeth New
Washington Policy Center

Watch Senate floor debate over the as-of-yet unconstitutional income tax that Washington state lawmakers have proposed in Senate Bill 6346. Spoiler alert: The Democratic-led Senate ended up passing the penalty on high-income workers  with just three Democrats voting “nay.” (See who voted how in the 27-22 vote here.) 

Elizabeth New (Hovde), Washington Policy Center
Elizabeth New (Hovde), Washington Policy Center

If the Democratic-dominated House of Representatives goes along with the Senate, supporters and opponents in both Houses then expect a legal battle.

That’s because the state Constitution allows for a uniform income tax, but this is not that. SB 6346 targets the income of individuals who earn above $1 million a year at a rate of 9.9%. Lawmakers did not propose a uniform income tax because it would not be politically popular. Taxing “the rich” often is. 

Litigation will be costly for taxpayers. If SB 6346 is upheld, it creates a precedent that can be expanded beyond today’s $1 million threshold — and lawmakers rejected amendments intended to lock in that limit. This also isn’t a tax swap: Washington would still lean on sales taxes, with only limited, targeted exemptions rather than a broader reduction.

One of the most interesting parts of the Senate floor debate was when bill sponsor and Senate Majority Leader Jamie Pedersen, D-Seattle, used the very same constitution he hopes to violate with SB 6346 to urge a “no” vote on an amendment that would have allowed the proposal to go before voters by way of a referendum. Pedersen told onlookers and colleagues to go “look it up” when talking about the part of the state Constitution that he’s into. 

Read more analysis from Washington Policy Center on SB 6346 and what it could mean for Washington’s tax system here.

Elizabeth New is a policy analyst and the director of the Centers for Health Care and Worker Rights at the Washington Policy Center. She is a Clark County resident.


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