OLYMPIA, Wash. — On Tuesday morning, around 100 people weighed in on the proposed “Millionaire’s Tax” in a public hearing. It took about two hours to get through everyone.
People spoke passionately both for and against the bill.
Former Washington Attorney General Ryan Frost said voters have turned down the measure several times before, and they should be listened to.
“While 23 other states are cutting taxes, Washington is raising them at a record pace,” Frost said,
“It’s time for the wealthiest people in the history of this world to pay their fair share,” April Sims said.
“This is another tax that won’t let us generate wealth in our families; it limits access to capital,” a man against the bill said.
The controversial bill would tax annual income over $1 million at 9.9%.
For example, a household making $1.2 million would pay close to $20,000 in taxes.
Washington State Senator Jamie Pederson proposed the bill. He said there is a lot of work to be done to get Washington up to speed on an even tax structure.
“Our tax system needs to be restructured so it’s not the second most regressive in the United States,” Pederson said.
Supporters say the money would bring in $3.5 billion annually.
It exempts small businesses with revenues under $300,000 from the business and occupation tax. It would also eliminate the sales tax on personal hygiene products like toothpaste and sunscreen. It also expands a rebate on sales tax for low-income families.
Governor Ferguson wants to use the money to offer sales tax holidays and eliminate the tax on all baby products, too.
However, not everyone is in favor of the bill, including some business owners.
“This bill is described as a tax on millionaires, but in reality, it’s a tax on businesses structured as LLCs and partnerships. This is not money in their personal bank; it’s working capital,” said Michele Williams.
The House will soon vote on it. It passed the Senate last week.