Washington GOP Chair Claims Democratic Proposal May Lead to Income Tax for All State Taxpayers
Unleash Prosperity co-founder Steve Moore argues against high taxes driving out residents and proposes indexing capital gains on home sales for inflation on ‘The Bottom Line.’
Washington state GOP Chairman Jim Walsh is voicing strong opposition to Governor Bob Ferguson’s proposed “millionaire tax,” cautioning that its implications could extend beyond just the affluent residents of the state.
The millionaire tax was introduced in late December when Ferguson announced a new 9.9% income tax targeting residents earning over $1 million annually, ahead of the 2026 legislative session. Notably, this tax does not apply to individuals whose net worth reaches that threshold solely based on their home value.
According to Ferguson’s office, the proposal aims to address the state’s ranking near the bottom for fairness and equality in the national tax system. The governor highlighted that families in the bottom 20% of income brackets pay 13.8% of their total income in taxes, while the top 1% contribute only 4.1%.
Gov. Bob Ferguson is proposing a millionaire tax for Washington residents earning over $1 million. (Alexi Rosenfeld/Getty Images)
Ferguson is advocating for a rebalancing of the tax system to benefit working families and small business owners who have been adversely affected by the affordability crisis.
Despite multiple attempts to reach out, Ferguson’s office has not responded to inquiries for comment.
Walsh contends, as reported by Fox 13 Seattle, that the state’s Supreme Court justices might find the tax unconstitutional if it targets only one demographic for income taxation. He warns that this could set a precedent for Democrats to impose income taxes on all residents.
Ferguson has assured that he will not lower the income threshold to tax anyone earning less than $1 million annually.
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“We don’t buy it, nobody buys it,” Walsh stated emphatically.
FOX Business also reached out to Walsh’s office for further comments.
Washington state GOP Chairman Jim Walsh is pushing back against Gov. Bob Ferguson’s proposed “millionaire tax.” (Karen Ducey/Getty Images)
A Tax Foundation analysis indicates that the proposed tax could result in a top rate exceeding 18% on wage income and restricted stock units (RSUs) in Seattle, potentially making it the highest rate in the nation. The analysis notes that very few individuals earn salaries exceeding $1 million; instead, such incomes typically derive from capital gains, dividend income, pass-through business income, and RSU vesting.
Furthermore, the Tax Foundation warns that the tax would disproportionately impact small business owners and tech workers who receive RSUs as part of their compensation packages. Washington state is home to approximately 695,695 small businesses and nearly 360,000 employees in technology-related jobs, as reported by the Small Business Administration and the Washington State Department of Commerce.
“A tax this aggressive would do real damage to Washington’s economy, sending jobs and economic opportunity elsewhere,” cautioned Jared Walczak, a senior fellow at the Tax Foundation. “For significant portions of the state’s tech sector, already burdened by unusually high business taxes, a 9.9 percent income tax could be the tipping point, driving future expansions to other states and potentially taking existing jobs with them.”
A view of Olympia, Washington, the state’s capital city. (iStock)
Ferguson maintains that the revenue generated from this tax should be allocated to enhance K-12 funding, thereby improving Washington students’ access to a world-class education. Additionally, he aims to eliminate sales taxes on essential personal hygiene products, such as shampoo, deodorant, and toothpaste, as well as essential baby products like diapers, wipes, and infant formula.
FOX Business has reached out to both Ferguson and Walsh for further comments.
Unleash Prosperity co-founder Steve Moore argues against high taxes driving out residents and proposes indexing capital gains on home sales for inflation on ‘The Bottom Line.’
Washington state GOP Chairman Jim Walsh is voicing strong opposition to Governor Bob Ferguson’s proposed “millionaire tax,” cautioning that its implications could extend beyond just the affluent residents of the state.
The millionaire tax was introduced in late December when Ferguson announced a new 9.9% income tax targeting residents earning over $1 million annually, ahead of the 2026 legislative session. Notably, this tax does not apply to individuals whose net worth reaches that threshold solely based on their home value.
According to Ferguson’s office, the proposal aims to address the state’s ranking near the bottom for fairness and equality in the national tax system. The governor highlighted that families in the bottom 20% of income brackets pay 13.8% of their total income in taxes, while the top 1% contribute only 4.1%.
Gov. Bob Ferguson is proposing a millionaire tax for Washington residents earning over $1 million. (Alexi Rosenfeld/Getty Images)
Ferguson is advocating for a rebalancing of the tax system to benefit working families and small business owners who have been adversely affected by the affordability crisis.
Despite multiple attempts to reach out, Ferguson’s office has not responded to inquiries for comment.
Walsh contends, as reported by Fox 13 Seattle, that the state’s Supreme Court justices might find the tax unconstitutional if it targets only one demographic for income taxation. He warns that this could set a precedent for Democrats to impose income taxes on all residents.
Ferguson has assured that he will not lower the income threshold to tax anyone earning less than $1 million annually.
KEN GRIFFIN’S FLORIDA TAKEOVER: CITADEL FOUNDER SHELLS OUT $180M FOR LATEST PIECE OF MIAMI EMPIRE
“We don’t buy it, nobody buys it,” Walsh stated emphatically.
FOX Business also reached out to Walsh’s office for further comments.
Washington state GOP Chairman Jim Walsh is pushing back against Gov. Bob Ferguson’s proposed “millionaire tax.” (Karen Ducey/Getty Images)
A Tax Foundation analysis indicates that the proposed tax could result in a top rate exceeding 18% on wage income and restricted stock units (RSUs) in Seattle, potentially making it the highest rate in the nation. The analysis notes that very few individuals earn salaries exceeding $1 million; instead, such incomes typically derive from capital gains, dividend income, pass-through business income, and RSU vesting.
Furthermore, the Tax Foundation warns that the tax would disproportionately impact small business owners and tech workers who receive RSUs as part of their compensation packages. Washington state is home to approximately 695,695 small businesses and nearly 360,000 employees in technology-related jobs, as reported by the Small Business Administration and the Washington State Department of Commerce.
“A tax this aggressive would do real damage to Washington’s economy, sending jobs and economic opportunity elsewhere,” cautioned Jared Walczak, a senior fellow at the Tax Foundation. “For significant portions of the state’s tech sector, already burdened by unusually high business taxes, a 9.9 percent income tax could be the tipping point, driving future expansions to other states and potentially taking existing jobs with them.”
A view of Olympia, Washington, the state’s capital city. (iStock)
Ferguson maintains that the revenue generated from this tax should be allocated to enhance K-12 funding, thereby improving Washington students’ access to a world-class education. Additionally, he aims to eliminate sales taxes on essential personal hygiene products, such as shampoo, deodorant, and toothpaste, as well as essential baby products like diapers, wipes, and infant formula.
FOX Business has reached out to both Ferguson and Walsh for further comments.
