A longtime Seattle journalist, Luke Duecy joins KIRO Newsradio after several years as a reporter on KOMO 4 News as a general assignment reporter. Luke also recently worked in PR, where he operates a boutique firm.
Washington’s proposed millionaires’ tax is heading toward a legal showdown after Governor Bob Ferguson signed the controversial income tax measure, prompting a lawsuit from a conservative advocacy group that argues the policy violates the state constitution.
The Citizen Action Defense Fund announced it is preparing to file a lawsuit within days challenging the legality of the new Washington income tax on high earners. The group has retained former Washington Attorney General Rob McKenna to lead the case, citing long-standing legal precedent, including a 1933 State Supreme Court case that classifies income as property under state law. “The Constitution is really clear and has been clear as interpreted by case law for the last 100 years,” Jackson Maynard, the executive director of the Citizen Action Defense Fund, told KIRO Newsradio. “You can have an income tax in Washington state, but it has to meet certain requirements. It has to be uniform, and it has to be capped at 1%, and the problem with the income tax that was passed by the legislature is it does neither of those things.” Ferguson signed the bill into law on Monday during a public ceremony inside the State Capitol, then declared “Thank you, thank you, thank you. We did it, everybody,” Ferguson said during the bill’s signing. “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.”“This legislature has systematically dismantled Washington state’s competitive advantages that have brought great companies here or inspired people to start their companies here, and all of that is going away now,” McKenna told KIRO Newsradio. 'It's a gimmick': Former WA attorney general urges lawmakers to reject 'unconstitutional' 'millionaire tax' 'A bit shocking': Businesses looking to leave WA nearly doubled since 'millionaire tax' proposal, AWB finds Harger: Olympia is passing an income tax you can't vote on. Now a Democratic leader wants to dissolve businesses that fight back The lawsuit is setting up a high-stakes court battle over whether Washington can impose a progressive income tax without a constitutional amendment. Supporters of the 9.9% tax on any income above a $1 million threshold have long said the state needs the roughly $3.5 billion it would start generating in 2029 in order to cover growing costs for state support programs., increasing financial support for an estimated 460,000 households. Eligible families could receive payments ranging from $300 to $1,300 annually. Lawmakers also added tax relief for small businesses and eliminated sales taxes on essential items such as diapers, hygiene products, and over-the-counter medications. In addition, it directs 5% of projected revenue to theThe bill’s sponsor, Senate Majority Leader Jamie Pederson, D-Seattle, has argued the money is needed to tackle affordability issues across the state. “This is a way of changing our direction, so that our tax system is adequate to the needs we face in the 21st century,” Pedersen explained on the Senate floor before the legislature passed the bill. “I think it’s sad that the Governor and the legislature are using hungry kids as political pawns,” Maynard responded. “If they really wanted to help hungry kids and give them free lunches, they would make that the top of the budget priority in our multi-billion-dollar budget instead.” “We have just grown by leaps and bounds, and our public services don’t have enough money to provide the level of service that we’ve had in the past, so if we don’t want to have these continuing fiscal problems, then we need to right our upside-down tax code,” Villenueve explained. “The only way to fix that is to require the wealthy to pay what they owe.”During public testimony as the bill was making its way through the State House of Representatives, Jabe Blumenthal, a lifelong Washingtonian who built his wealth in tech, said he has supported the state’s capital gains tax since its start and expects to pay the proposed state income tax every year. “We need tax policy where all rich people, not just those who want to, are required to pay their fair share into a system that works so well for them,” Blumenthal testified. “And I’m very happy to do so.” “This is just another tax that’s going to make us not able to generate wealth in our families,” Mike Sotelo, president of the Ethnic Chamber of Commerce Coalition , stated. “It limits access to capital. It makes a higher loan denial for us … You want to help minority businesses? Don’t pass this bill.” Maynard told KIRO Newsradio that Democrats should concentrate more on budget cuts rather than adding to it. “They have a spending problem, not a revenue problem, and so they have gone to the well so many times that this is now an effort to try to circumvent the clear requirements of the Constitution,” Maynard said. “The budgets have ballooned, and yet they won’t bring the spending under control. So, they’ve got a political problem that now has morphed into a legal problem, and so that’s why we have courts.” Opponents, like Maynard, argued that the tax has already driven higher-earning residents and businesses out of the state and warned that it may lead to a lowering of the income threshold over time. Business leaders and critics also raised concerns during recent hearings about economic impacts and access to capital.that the company is now packing up and leaving, while a coalition of 30 businesses in Snohomish County, led by Jason Bickford of Bickford Ford, has threatened to move because of the millionaires’ tax. “I don’t feel that I have a choice, and this new tax takes my effective tax rate to somewhere between 45 and 51% when you include everything — Excise Tax and the whole shooting match,” Abraham explained. “And with a 50% tax rate, so you even own your business?” Republican lawmakers like Travis Couture have warned that the tax might also drive away top-earning athletes from moving to the state. “What really matters to pro sports teams is ticket sales,” Couture said. “Cal Raleigh sells tickets, Sam Darnold tells tickets.” The anticipated lawsuit could ultimately determine the future of income tax policy in Washington state and whether the state’s constitutional restrictions on graduated income taxes remain in place. “I think people are shocked that a state that has not had an income tax and has 100 years of precedent saying you can’t have an income tax is now passing one over the face of that case law, over what everybody understood to be the law,” Maynard said. “And I think there’s a lot of fear that it’s not just going to be millionaires, quote, unquote, that are taxed. It’s going to be everybody, because all they have to do is remove a paragraph, and this is an income tax that can be applied to everybody, and there’s no guarantee a future legislature won’t do that.”Washington’s proposed millionaires' tax is heading toward a legal showdown after Governor Bob Ferguson signed the controversial income tax measure.Gas prices in Washington have climbed nearly $1 in the past month and are threatening to break all-time records for unleaded gasoline.Trump issues new threat to Iran’s civilian infrastructure if a ceasefire isn’t reached ‘shortly’ Trump threatened widespread destruction of Iran’s energy resources and other vital infrastructure if a deal to end the war with Tehran is not reached “shortly.” ‘A lot of votes may not count’: Supreme Court appears ready to upend WA mail-in ballot rules for federal races by November 2026 The U.S. Supreme Court heard arguments in a case that could require all ballots containing federal races to be physically received by Election Day.Trump signs executive action to pay TSA employees after Congress fails to agree on DHS funding President Trump acts to ensure TSA employee pay after Congress fails to agree on DHS funding, addressing urgent financial concerns.Washington filed a lawsuit Friday against Kalshi alleging it actively circumvents state gambling laws so users can place"prediction wagers" on nearly anything.WSECU Community Champion: Chrystal Ortega’s mission to feed Spokane Chrystal Ortega's tireless dedication recently earned her the WSECU Community Champions Award and a $1,000 grant to further the mission.When Shawn Tibbitts opened Tibbitts FernHill, he was just trying to survive. The small Tacoma restaurant has since earned culinary awards and praise.Wilcox Family Farms is continuing its cherished holiday tradition of giving back by donating nearly one million eggs to food banks across the South Sound region this season.Matthew Ballantyne has transformed that early awareness into action, embodying the organization's mission:"No Kid Sleeps On The Floor In Our Town."
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