The Washington GOP chairman says the Dem’s proposal would pave the way for an income tax cut for all state taxpayers.
Unleash Prosperity founder Steve Moore opposes high taxes that drive residents away and proposes to show the big gains in real estate sales for inflation in ‘The Bottom Line.’
GOP Chairman of the state of Washington Jim Walsh opposes the proposal of Gov. Bob Ferguson’s “millionaire tax,” which he warns could affect more than the state’s wealthiest citizens.
The millionaire’s tax was proposed in late December when Ferguson announced his support for a new 9.9% income tax on residents earning more than $1 million a year before the 2026 legislative session. It does not include people whose net worth reaches that amount based on the value of their home, for example.
Ferguson’s office submitted its proposal saying the state is following suit to maintain fairness and equity in the nation’s tax system. The governor said families in the bottom 20% pay 13.8% of their total income in taxes, while those in the top 1% only pay 4.1% of their income.
Gov. Bob Ferguson is proposing a million dollar tax on Washington residents who earn more than $1 million. (Alexi Rosenfeld/Getty Images)
Ferguson is now pushing for the state to “rebalance this flawed system and restore money and reduce taxes to working families and small business owners who have been hit hard by the insolvency crisis.”
Ferguson’s office did not respond to multiple emails or phone calls for comment.
Walsh argued, according to Fox 13 Seattle, that state Supreme Court justices could declare it unconstitutional for the state to tax just one group of people. He said the move would pave the way for Democrats to impose an income tax on everyone, according to the outlet.
Ferguson said he would not lower the tax limit on anyone making less than $1 million a year.
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“We don’t buy it, nobody does,” Walsh said.
FOX Business has reached out to Walsh’s office for comment.
Washington State GOP Chairman Jim Walsh opposes the proposal of Gov. Bob Ferguson’s “millionaire tax.” (Karen Ducey/Getty Images)
A Tax Foundation analysis found that the proposed tax would impose a higher rate of more than 18% on salary income and restricted stock units (RSU) sold in Seattle, making it the highest rate in the U.S. The group said very few people earn more than $1 million; income at that level flows through capital gains and dividend income, corporate income and RSU grants.
The Tax Foundation also said the proposed tax would hit small business owners and tech workers who receive RSUs as compensation the most. Washington state has 695,695 small businesses and nearly 360,000 workers in technology-related jobs, according to the Small Business Administration and the Washington State Department of Commerce, respectively.
“A tax of this magnitude would seriously damage Washington’s economy, sending jobs and economic opportunities elsewhere,” wrote Jared Walczak, executive director of the Tax Foundation. “In particular, in key areas of the state’s tech sector, which have been targeted by unusually high business taxes, a 9.9 percent income tax could prove the last straw, driving any subsequent expansion into other states, and possibly taking away existing jobs.”
View of Olympia, Washington, the state capital. (Stock)
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Ferguson argued that revenue from this tax should go toward providing additional K-12 funding to strengthen Washington students’ access to world-class education and eliminate the sales tax on essential personal hygiene products, such as shampoo, deodorant and toothpaste; essential baby products, such as diapers, wipes and baby formula, or essential and affordable clothing items.
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FOX Business has reached out to Ferguson and Walsh for comment.
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