What is IP26-645 (Initiative 645)?

Learn More about I-645 on Washington’s November Ballot

I-645 cuts $13 billion from schools, hospitals, and child care

Initiative 645 (IP26-645 on November’s ballot) would blow a massive $13 billion hole in our state budget, resulting in devastating cuts to K-12 education, healthcare, human services, and higher education.

We're already struggling with overcrowded classrooms, higher tuition and fees, housing affordability, and skyrocketing healthcare costs. I-645 would make things even worse, resulting in:

  • Larger class sizes and fewer one-on-one supports for our children

  • Increased healthcare costs for Washington families

  • More cuts to child care, making it even more expensive for working parents

  • Elimination of free school meals for many elementary, middle, and high school students

I-645 takes money out of the pockets of millions of Washingtonians

  • I-645 will effectively increase taxes for 460,000 families by limiting who’s eligible for the Working Families Tax Credit. A married couple with two children could lose their tax rebate check of up to $1,330 a year. Learn more

  • I-645 raises costs for all of use by leading to an increase in taxes on over-the-counter medicines, diapers, and other essentials household items. Families will pay an average of $200 more a year in sales tax.

  • I-645 will result in cuts to free school meals, costing families up to $1,300 more a year per child for school meals.

I-645 hurts small businesses

  • I-645 will raise B&O Taxes on all small businesses by repealing the Millionaires Tax.

  • If I-645 passes, businesses with gross receipts under $250,000 will once again owe B&O Taxes, and those businesses with gross receipts up to $600,000 will lose their small business tax credit.

  • I-645 will effectively reverse the repeals of the retail sales and use tax on certain services including the tax on information technology training services and technical support; custom website development; custom software; security services; temporary staffing services; live presentations; and digital processing services.

  • By making child care even more expensive, I-645 will make it harder for small businesses to find and keep employees with reliable child care.

I-645 is a tax cut for the top 1%, worsening Washington’s upside down tax code

  • I-645 is bankrolled by California hedge fund mega-millionaire Brian Heywood to give himself a tax cut. It give a tax cut an estimated 25,000 mega-millionaires in WA, cutting billions from education and health care.

  • I-645 repeals Washington’s Millionaires Tax, a 9.9% tax on income more than $1 million/year. A household making $1,001,000 in annual income would pay just $90.90 in taxes. The Millionaires Tax does not apply to income from home or other real estate, retirement funds, or sales of small family businesses.

  • In Washington, the people with the lowest incomes pay 3.5x more in state and local taxes than the richest 1%. That’s why we’re the second worst in the U.S. when it comes to tax fairness and I-645 will make this even worse.

Frequently Asked Questions About I-645

Most of us will see increased costs. I-645 will effectively raise small business taxes and sales taxes. It will lead to removal of tax rebates, free school meals, and funding for childcare. Plus it cuts $13 billion from education and health care.

What does I-645 mean for me?

1

No. The Millionaires Tax on the top 1% does not go into effect until 2029, so anyone moving is doing so for other reasons. In a study released last year, two leading researchers on tax flight concluded that “the rich in high-tax states do not move any more often than those in low-tax states.” Learn more

Is the Millionaires Tax causing wealth flight?

2

Probably not. It applies to only the top 1%, an estimated 25,000 household in Washington, most of them in King County. The Millionaires Tax only applies to those making more than $1,000,000 a year in income. Real estate sales, retirement funds, sales of small family owned businesses are exempt. The first $1 million is exempt, so someone making $1,001,000 would pay just $90.90.

The Governor says he will veto lowering the tax threshold below $1 million. Any move to apply the Millionaires Tax to lower income households would like be repealed by voters through the initiative process.

Does the Millionaires Tax apply to me, or will it?

3

Will I-645’s impact on the Working Family Tax Credit apply to me?

4

I-645 will effectively stop the expansion of the Working Family Tax Credit to another 460,000 families. See if you’re one of those who will lose this tax rebate, worth up to $1,330 a year,