Caption: As he signs the income tax bill, Ferguson is surrounded by some of the grifters who will receive most of the extra revenue.
Earning less than $1,000,000? You will still need to file a state tax return along with you federal tax return each year starting tax year 2028 to prove to the greedy Democrats’ bureaucracy that you don’t make a million. Of course, they will find a way to use YOUR income information against you and other Washingtonians in their push to lower the cap to include the huge tax base of the middle class.
As the Washington State Supreme Court takes up the emergency petition from We The People to slap down the unconstitutional income tax law, let’s revisit who will receive this extra revenue. Washington’s Democrat Governor Bob Ferguson, on March 30th, signed historic legislation creating a state income tax, saying it is a critical step toward making the state’s system of taxation less regressive. Ha! Democrats are nothing if not greedy!
The most dangerous part of this new law, besides chasing the well-to-do out of the state (this has already begun) and besides chasing established businesses (like Starbucks) to another state and besides scaring startups away is the fact that it doesn’t designate how the new money will be spent. Yes, yes, I know Democrats who are in the process of ruining this state would ignore that provision anyway; but, had the fact that it does not force them to spend the money in a certain way. They are now salivating over how they can steer most of the money into the operating budget to pay for an array of new services, programs and grifts. Watch for NEW NGOs to spring up across the state run by the Democrats’ cronies.
“Thank you, thank you, thank you. We did it everybody,” Ferguson turned and exclaimed to the throng of lawmakers, union members, pro-tax advocates et al who expect to grift, in one way or another, off this increased tax revenue. Indeed, so many grifters were they that not all could squeeze into the state reception room at the Capitol to witness the signing of Senate Bill 6346. The bill imposes a 9.9% levy on households and businesses with income above $1 million a year beginning in tax year 2028 with collections starting in April 2029 when EVERY resident will be forced to file a state tax return to prove their income. It is expected to generate around $3 billion a year from an estimated 21,000 filers. Supporters viewed its enactment as a momentous stride toward re-engineering a tax code with the sponsors already admitting that they will quickly lower the cap to include those with modest income.
“We’ve asked Washington’s working families for far too long to shoulder far too much of the tax burden for the things that we all care about. We have not asked enough of our wealthiest neighbors,” Senate Majority Leader Jamie Pedersen, D-Seattle, the bill’s sponsor, told the crowd. But it must clear formidable hurdles before taking effect. Rob McKenna, a former state attorney general and 2012 Republican candidate for Washington governor, is leading the litigation along with the Citizen Action Defense Fund, arguing it is unconstitutional and conflicts with the state Supreme Court precedent set in 1933 when it invalidated a voter-approved income tax.
“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,” McKenna said in a statement.
MASSIVE OPPOSITION
To pass this bill, Democrats ignored the highest EVER number of “Cons” on the legislature’s website. Before the ink was dry, Brian Heywood, founder of the conservative political committee Let’s Go Washington, filed a referendum to give voters a chance to repeal the law this fall. However, because the new law contains a so-called “necessity clause” because the budget is in the red due to Democrats failure to “live within their means.” This prevents a referendum, the Secretary of State’s Office formally rejected the filing the next day. Heywood is suing to remove this language and allow such a ballot challenge. If this maneuver is unsuccessful, Heywood has said an initiative to derail the law will be pursued either this year or next.
Until March 30th, Washington had been one of nine states that does not tax individual wage and salary income. The state had an income tax on the books after voters approved one in 1932. But a year later, a divided state Supreme Court tossed it. Since then, voters have rejected variations of the idea multiple times, most recently in 2010 when the income level for individuals was $200,000.
21,000 FILERS WILL NOT SATISFY DEMS GREED
Senate Bill 6346 passed by margins of 51-46 in the House and 27-21 in the Senate. Overall, all Republicans and 11 Democrats, three in the Senate and eight in the House, opposed the legislation. The linchpin is the 9.9% levy on adjusted gross household income above $1 million a year. It would take effect January 1, 2028, with payments due April, 2029. The threshold would be adjusted for inflation every two years.
An estimated 21,000 filers would be subject to the tax today with one-third residing in the 41st, 45th and 48th legislative districts in King County, according to the state Department of Revenue. These include high-end zip codes in Hunts Point, Medina, Clyde Hill, Mercer Island, Bellevue, Redmond, Issaquah and Sammamish. Check out the interactive map of “millionaires” in each legislative district here.
The sponsors have admitted that they will quickly drop the tax down the income ladder into the middle class. “Today is a dark day in our state’s history. Republicans have said all along that an income tax on anyone in our state will become an income tax on everyone,” Senate Minority Leader John Braun, R-Centralia, said in a statement.
MORE GRIFT, KILLING SMALL BUSINESS
Statewide business associations warn the new tax will not benefit most small companies. Indeed, most very small businesses pass their profits through to the owners which will push ever more of them over the million dollar mark. Successful tech entrepreneurs warn of an exodus of those willing to settle here and launch startups. “We’ve seen what happens when states pursue this path: wealth leaves,” said Seattle entrepreneur Jesse Proudman. “I’ve spent decades building businesses in Washington and want to stay. But either the constitution constrains government power, or it doesn’t and I’m willing to fight over that point.”
The law earmarks 5% of annual tax proceeds for the state’s Fair Start for Kids Act starting in 2029. This would shore up financial support for child care and early learning programs. Likely, most of this money will go to fake daycare companies owned by Somalis. The State of Washington has 30,000 Somalis, virtually all of whom live in the Greater Seattle Area. According to Democrat Governor Bob Ferguson, Somalis own 539 of the 1,853 licensed day care centers in the Greater Seattle Area.
One of the largest chunks of proceeds of the $3 billion in anticipated receipts will allegedly go to expand the state’s Working Families Tax Credit to cover people who are at least 18 years old and to boost the income levels for eligibility. It is estimated the credits, which range from $50 to $1,330 a year, would be available to 810,000 lower-income households, up from the current 350,000. This change will cost roughly $230 million a year.
If the law stands, companies grossing less than $300,000 a year will be exempt from paying the state’s main business tax. Sales tax for diapers, personal care products, like shampoo and deodorant, and many over the counter drugs will be eliminated on January 1, 2029. And most new retail sales taxes lawmakers adopted last year on services will end on January 1, 2029. A tax on advertising services that drew a lawsuit from cable giant Comcast will remain in place.
Starting July 1st, public schools will be exempt from paying this new sales tax on services, including for live presentations, temporary staffing and security. However, this could change if the law is paused due to a legal challenge.
The law directs the state Department of Revenue to begin setting up the means for administering this new tax system. It also establishes an advisory council of so-called tax experts, lawyers and lawmakers to monitor its development and rollout. There will not be a Republican or a fiscal Conservative among them.
Check me out on X @dianelgruber.
The Criminal Justice Training Commission (CJTC) has been around since the 1970s but it’s duties greatly expanded on April’s Fool’s Day when Democrat Governor Bob Ferguson signed SB 5974. Beginning April 11th a person who wants to run for sheriff in his/her county must first get permission from …
The author, Diane L. Gruber, is a First Amendment advocate who writes for Substack. She calls her Substack newsletter America First Re-Ignited. Follow me on X @DianeLGruber.
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