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Washington has one of the most regressive tax structures in the nation.
Washington’s highest earners pay as little as 3% of their income in Washington state taxes, while our lowest earners pay as much as 13%. That’s a burden more than four times greater put on those least able to pay. The ‘millionaires’ tax’ begins to correct this imbalance and affects less than 1% of the population - Washingtonians who take home more than $1 million a year. Currently, wealthy Washingtonians pay lower taxes here than they would pay in 42 other states.
What Yes on I-645 Would Mean
Repealing the Millionaire’s Tax will have significant consequences:
- Washington’s unfair and imbalanced tax structure remains unchanged. The state will give up an estimated $3–4 billion in annual revenue needed to support vital public services.
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The state budget faces an even larger shortfall. I-645 keeps several tax changes passed by the Legislature without providing a way to pay for them. These good changes provide relief to struggling families and small businesses, including:
- Expanding the Working Families Tax Credit
- Creating a tax credit for small businesses
- Exempting grooming and hygiene products from sales tax
- Reducing the sales tax on some services
- Providing additional funding for city and county public defense services
Keeping these tax changes without replacing the lost revenue is not responsible. Asking those who can afford to pay more to help fund tax relief for families and small businesses is reasonable.
Why the LWVWA Opposes I-645
The League of Women Voters of Washington supports a tax system that is fair, adequate, balanced, and based on sound economic principles. We believe that a person’s ability to pay should be an important consideration.
Washington's tax system places a disproportionate burden on low- and middle-income residents. The League supported the Millionaire's Tax because it asks Washington households with annual incomes of $1 million or more to contribute more toward the public services and programs that benefit all Washingtonians.
The tax applies only to a small share of the state's highest-income households—those who can most afford to pay more and who currently pay a smaller share of their income in state and local taxes than many lower- and middle-income residents.
Help create a fairer tax system in Washington. Oppose I-645.
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