Washington state voters will have the chance to weigh in on a new income tax in November. The tax, which targets households with earnings over $1 million, was certified by the Secretary of State’s office after sponsors gathered over 500,000 signatures.

Background

The income tax law was signed by Democratic Gov. Bob Ferguson in March, with collections set to begin in 2029. However, the law’s fate is now in the hands of voters, who will decide whether to repeal the 9.9% tax on individual and household wage income above $1 million.

A ‘yes’ vote on the initiative will repeal the tax, while a ‘no’ vote will uphold the entire law, including the statewide income tax. The initiative also leaves in place tax breaks for families and small businesses, as well as the expansion of a tax credit program for lower-income families.

Proponents of the initiative, including Brian Heywood, founder of Let’s Go Washington, argue that the tax is unnecessary and will harm the state’s economy. Opponents, including Gov. Ferguson, contend that the tax is needed to fund important state services and that repealing it would require finding alternative sources of revenue.

Next Steps

The state attorney general must now prepare a ‘public investment impact disclosure’ statement, which will be included on the ballot. This statement must be a single sentence of no more than 15 words and will list the top three categories of state services that would be affected if the initiative is approved.

Original reporting: Renton Reporter — read the source article.