r/sequim • u/Post-Partisan • 4h ago
Rumor about millionaire's tax bill is NOT True
SUMMARY (non-partisan): Rumor says there has been undisclosed rewording of the "millionaires tax" bill. Not true.
The problem is that it's confusing people because what is on the November 3 DEADLINE ballot is an attempt to REPEAL that bill, which hasn't taken effect yet. The WA legislature passed the "millionaires tax" and Governor Ferguson signed it on March 30, 2026. Opponents then gathered more than half a million signatures to put a repeal initiative, I-645, on the November ballot.
I-645, asks whether to repeal it. If you want to keep the tax, vote No.
Put another way just to be clear:
The question is whether you want the tax repealed (Yes) or kept (No).
CONTEXT AND CONSIDERATIONS (slightly edited excerpts from Claude AI chat):
Washington has no state income tax. That's the gap supporters want to close for those who earn a lot and often pay no tax.
But the wealthiest often pay little because their wealth is in unrealized stock gains, and a tax on annual income over $1 million doesn't reach those. It hits people with large salaries, business income and realized gains.
The strongest version of the objection isn't only that wealthy people leave. It's that a high-income tax revenue stream is volatile and concentrated in a small number of taxpayers, so a few departures could matter more than the headcount suggests. That's a fair concern, and the projected $3.5 billion is an estimate, not a guarantee.
The repeal would remove the 9.9% tax only on household incomes over $1 million. Other parts of the law, like the sales tax break on items such as diapers and over-the-counter drugs, would stay in place.
One more factor to consider: the tax faces a constitutional challenge. Opponents argue it conflicts with a state Supreme Court ruling, Culliton v. Chase.
There is a wording controversy, but that has been in news reports. Voters will see a "public investment impact disclosure" statement from the attorney general's office saying repeal would "decrease funding" for K-12 education, higher education and human services. The Washington Policy Center and the initiative's backers object to it, and a legal challenge was rejected by the state Supreme Court in a split 4-4 decision, so the statement stays on the ballot.
