On Tuesday, Washington voters upheld the state’s newly enacted income tax on high‑earning households, rejecting Initiative 645 by a margin of 58% to 42%. The measure sought to repeal the tax that applies to individual and household wage income above $1 million per year.
County‑by‑county results
The defeat was broad‑based. In King County, the state’s most populous county and Democratic stronghold, nearly 67% voted against the repeal. Voters in Skamania, Pacific, Mason and Okanogan counties also turned the initiative down, showing statewide opposition to rolling back the tax.
Political backdrop
The vote is a clear victory for Democratic Governor Bob Ferguson, who championed the tax last December. Ferguson told supporters, “Washingtonians understood one thing: we’re not going to give tax breaks to millionaires when we can use those dollars to make life more affordable for working families across the state.” Senate Majority Leader Jamie Pedersen, a chief architect of the tax, also praised the outcome, noting that the current tax system has been an “anchor around our neck” for working people and small businesses.
What the tax funds
The 9.9% levy is projected by the state’s chief economist to generate about $3.5 billion from roughly 25,000 filers beginning in 2029. Revenue will fund several targeted relief measures, including eliminating sales tax on diapers, personal hygiene products and certain over‑the‑counter drugs, repealing sales and use taxes on most retail services, and expanding a tax‑credit program for lower‑income families.
Opposition and concerns
Conservative group Let’s Go Washington, founded by hedge‑fund manager Brian Heywood, led the campaign to repeal the tax. Heywood warned that if the tax remains, “every job creator that leaves this state, every entrepreneur who doesn’t set up shop in Washington, every employee who is concerned that tax will be lowered to them, that is on Governor Ferguson.” Critics also fear the tax could eventually be lowered to affect a broader base of earners.
Legal challenges to the tax’s constitutionality are pending, but the lawsuit has been paused while the vote outcome is assessed. Ferguson, a former three‑term state attorney general, expressed confidence that the courts will uphold the levy.
Campaign financing
The “No on 645” campaign reported spending nearly $12.7 million, with major contributions from the Service Employees International Union ($3.5 million), Washington Education Association ($3 million), Washington Federation of State Employees ($2.5 million) and the National Education Association ($1 million). Let’s Go Washington contributed over $4 million, while the Vote Yes Repeal the Income Tax committee spent $3.4 million, led by donor Lawrence Hughes.
Historical context
Washington has been asked eleven times since 1932 to adopt a personal or corporate income tax. Earlier attempts failed, most recently in 2010 when thresholds were set at $200,000 for individuals and $400,000 for joint filers. The new tax, created by Senate Bill 6346, will take effect on Jan. 1, 2028, with the first collections arriving in 2029.
Supporters argue the tax will reduce the state’s regressive tax structure, which relies heavily on sales taxes that burden lower‑income residents. Opponents continue to warn of potential budget shortfalls if the tax is later weakened.
Original reporting: Renton Reporter — read the source article.
