Millionaire's tax passes WA Senate, now to the House

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THIS! From State Senator Jamie Pedersen : the WA Millionaires Tax passed the WA Senate today. Please read shortened email.
Friends and neighbors,
Earlier today the Senate passed the Millionaires Tax (SB 6346) off the Senate floor. I sponsored this legislation to help fix the state’s unfair and outdated tax code, provide sustainable funding for public schools and health care, and reduce taxes for working families and small businesses. Click here or on the image below to watch my floor remarks from today’s debate on the Senate floor.
In our state, households with income in the bottom 20% pay 13.8% of their total income in taxes, while those with income in the top 1% pay only 4.1%. Only Florida has a more regressive tax structure than Washington.
The Department of Revenue estimates that the Millionaires Tax would generate $3.7 billion annually by asking roughly 20,000 of the wealthiest households in the state to pay a 9.9% tax on income above $1 million. Households with incomes of $1 million and below would pay nothing.
Most Washingtonians believe the wealthiest few should share more of the responsibility for funding our state services. Democrats, independents, and even Republicans are frustrated with a tax system rigged against working- and middle-class families.
There is growing anger and frustration as we watch the Trump administration deliver massive tax cuts for the ultra-wealthy while slashing funding for health care and food assistance. Rising costs from tariffs, coupled with our state’s nearly century-old tax structure, is making life more unaffordable for people in Washington. And it is making it impossible for our state budget to keep up with the needs of Washington families.
I hear from you consistently about the need to support quality public schools, affordable housing, health care, community safety, and other vital services. The Millionaires Tax would help fund these shared priorities while reducing taxes for most Washingtonians.
Tax reductions include eliminating sales tax on grooming and hygiene products, such as shampoo and deodorant, and the sales tax on services, including temporary staffing and security. Every small business grossing less than $300,000, over two thirds of all businesses in the state, would be exempt from the Business & Occupation Tax (B&O) tax starting in 2029.
The Millionaires Tax will also allow for the expansion of the Working Families Tax Credit, a sales tax rebate for Washington families with low to moderate income levels struggling to make ends meet.
Additionally, 7% of the revenue collected from the Millionaires Tax will be distributed to counties across the state to help pay for public defense systems and strengthen public safety.
The Millionaires Tax now will move to the House, which will undoubtedly put its own stamp on the bill. I will continue to do everything I can to ensure this important policy makes its way to the governor’s desk before the session concludes on March 12.
Best wishes,
Jamie
Sen. Jamie Pedersen
Jamie.Pedersen@leg.wa.gov