Governor Bob Ferguson has signed the so-called millionaires tax into law, creating a first of its kind income tax for Washington State.XXXWhat the tax doesThe
"It's been a long journey to get here, but because of the hard work of so many folks, it's a historic day for Washingtonians," Ferguson said.The law will create an income tax for Washingtonians who make more than $1 million, which includes total dual-income, each year at a rate of 9.
9%. Here's how it will work: the first $1 million of someone's annual income would be deducted, and anything earned after that would be subject to the 9.9% tax.Supporters of the measure, like Ferguson, said it will ensure that everyone in the state is paying their "fair share." Ferguson has continuously highlighted how the bill might help uplift the residents who need it by using the tax revenue to fund K-12 education, health care, higher education, and other essential governmental services. Ferguson said the tax revenue will also extend expansions to the working families' tax credit for about 460,000 families.Ferguson said proposal will affect less than one-half of 1% of Washington households. Though the number of people the tax impacts is small, the state expects to gain at least $3 billion annually once payments begin.Though the tax is signed into law, it will not go into effect quietly, and in fact could be repealed or put on pause before any money is collected., aiming for November 2026, to ask voters to repeal the tax entirely. In order to get the initiative on the ballot, the state GOP will need to collect and turn in more than 300,000 valid signatures by July 2, creating a tight deadline. Lawsuits are also on the line. The Citizen Action Defense Fund announced, ahead of the signing, that it is preparing a lawsuit to challenge the legality of the new tax. In its argument, the CADF points to the state constitution, saying that because income tax has long been classified as property under the Washington State Constitution, this income tax violates the uniformity requirement under Article VII. “Washington’s constitution is clear, and the courts have been equally clear for nearly a century—income is property, and progressive income taxes are unconstitutional under existing law,” said lead counsel and former state Attorney General Rob McKenna. “If the State proceeds with the new income tax, it will create a direct conflict with binding precedent and the constitutional protections that safeguard taxpayers. We are preparing to challenge the tax in court.”Ferguson has said he expects a legal challenge and called that “appropriate,” adding that the state Supreme Court would ultimately decide the issue. He also predicted a political battle with voters, describing it as a case for “the court of public opinion." But Ferguson also said he would not support a law that he did not think would stand the test of constitutionality.Traces of drugs, including cocaine, found in some shark species: study A new study published in the journal Environmental Pollution found traces of pharmaceuticals and illicit drugs in several shark species.All lanes of eastbound State Route 16 near the mid-span of the Tacoma Narrows Bridge are blocked due to a crash.A drone scare at PBI triggered a ground stop and scrambled helicopters Sunday near Air Force One, per a Delta pilot caught on video circulating online.Democrats defended the bill as a step toward tax reform, arguing it would ensure the state’s highest earners contribute more toward public services.
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