Millionaires Tax Steps From Final Approval!
From Around Washington, Small Business Owners, Child Care Providers, Caregivers, Teachers, and More Celebrate Historic House Passage of Millionaires Tax
Today the House took an historic step by passing the Millionaires Tax. The proposal, which Governor Ferguson has said he plans to sign, will not only take significant steps towards fixing our state’s upside-down tax code, but provide significant benefits for working families and small businesses.
The Millionaires Tax will:
Tax annual earnings over $1 million at 9.9% (the first $1 million received is exempt)
Raise nearly $3.5 billion per year
Apply to only 30,000 or less than 1% of Washingtonians, those who typically pay a much lower state tax rate than lower income families
The House version of the bill includes:
An expansion of the Working Families Tax Credit to all adults 18+ whether or not they have a child, plus expanded income eligibility
Historic tax relief for WA's small businesses, exempting the vast majority from paying any B&O tax (combined exemption and tax credits totalling to first $300,000 gross revenue without B&O)
Free school lunch and breakfast for all Washington students
A sales tax break for working people by exempting over-the-counter medicine, diapers, hygiene and grooming products
5% of revenue dedicated toward child care and early learning
“When I received the Working Families Tax Credit, it was not a bonus. It was stabilization. It allowed me to catch up on bills, avoid falling further behind, and create a small amount of breathing room in a system where one unexpected expense can spiral into crisis. The credit recognizes that low-income working families like me pay a disproportionate share of their income in taxes in Washington. It is one of the few tools that directly puts money back into our hands, money we immediately spend in our local communities on rent, utilities, food, transportation, and our children’s needs,” said Amy Roark of Clark County and a former member of the Poverty Reduction Work Group Steering Committee.
“As the primary caregiver for a son with neurodevelopmental disabilities, I'm thrilled Washington's Millionaires Tax will provide both relief for struggling families and healthcare support for those who need it most. We live in one of the wealthiest states in the U.S., there's no good reason why I and my neighbors should be paying a higher tax rate than the billionaires a few zip codes away," said caregiver Gwen Goodfellow of Longview.
“I consider myself extremely fortunate to be as successful as I have been. Even as someone who has been able to do all the things that I've done, I will never pay the Millionaires Tax. This is because under the law, the business expenses are deductible just as they are with federal taxes. And the proposed B&O tax relief means our overall taxes are even lower. This is a win for small businesses, all around,” said Steven Severin, Co-Owner of Neumos and Life on Mars in Seattle.
"As an educator, I know firsthand that school meals are such a blessing for families and kids. We have so many students at my school who take advantage of this program, especially with the affordability crisis and recent cuts to SNAP. It's so important for parents that they know their kids will get a good nutritious meal and for kids it's essential for learning. I truly appreciate legislators and Governor Ferguson making this a priority," said Suzanne Bantilan, Teacher at Cooper Elementary in Spokane.
"As a nonprofit child care provider in Skamania County, Working Connections Child Care is the reason that the families I serve are able to attend our programs. 30% of kids under 5 live at or below the federal poverty level in my area. Without this lifeline, kids would lose out on critical early development opportunities and parents would not be able to go to work. I appreciate that the legislature and the Governor recognize how important this program is and have dedicated a portion of the Millionaires Tax revenue toward funding it," said Tiffany Pearsall, Founder of Play Frontier Center for Child Development in Carson.
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