First Attack on Millionaires Tax Fails

Official Statement from Invest in Washington Now

“Today’s Washington State Supreme Court ruling is another loss in California hedge-fund manager Brian Heywood’s record of failed efforts to give himself a tax cut. He lost by nearly 30 points with his attempt to repeal the capital gains tax on mega-millionaires and billionaires. Now he is trying to repeal the popular Millionaires Tax that not only funds urgent needs in healthcare and education, it puts much needed money into the pockets of working families and small businesses struggling to afford the basics.”

According to the Economic Opportunity Institute, when adjusted for income and population growth, Washington’s budget has effectively plummeted by 60%. Between 1995 and 2025, the state’s annual operating budget dwindled from 1.55% to a mere 0.63% of total personal income for every one million residents, accounting for inflation.[2] 

A study by the Institute of Policy Studies (IPS) found that the “millionaire class” grew by 46.9% in Washington despite the state’s first ever capital gains tax. Their wealth grew by more than $748 billion in Washington state between 2022 and 2024. 

Polling shows Washingtonians overwhelmingly support fixing Washington’s upside down tax code, with 60% supporting the Millionaires Tax to fund education and health care. This data is backed up by the landslide rejection of Brian Heywood’s I-2109, with 64% of voters choosing to maintain the capital gains tax on extraordinary profits in 2024 and by an independent poll showing 61% support the Millionaires Tax.

About Invest in Washington Now

Invest In Washington Now is a network of over 130,000 Washingtonians from across the state united for a just and equitable tax code. We led efforts to pass the state’s capital gains tax on extraordinary profits and defended it at the ballot last year by defeating Initiative 2109 with over 64% of the vote. Learn more at investinwanow.org