Bad Bills That Passed
Washington’s new state income tax
Senate Bill 6346 creates Washington’s new state income tax, a move that would fundamentally alter the state’s economic landscape.
This proposal is historically unpopular. When the bill was heard in the Senate, over 60,000 people signed in against it, and when it was heard in the House, over 100,000 people signed in against it–making it the most unpopular bill in state history.
Washingtonians have rejected income taxes at the ballot box 10 times, yet the Democrat majority in Olympia is pushing forward with a plan that defies both voter intent and the state constitution.
The legislation imposes a new 9.9% tax on income. While the bill currently sets a high threshold, it establishes the administrative machinery necessary to tax every Washingtonian.
The bill also penalizes marriage. It sets a $1 million standard deduction for a single person but limits a married couple to the same $1 million combined. This means two earners are taxed as a single unit, pulling more families into a higher tax bracket than if they filed separately.
Finally, the legislation included provisions to bypass voter approval. It explicitly amends the voter-approved initiative (I-2111) that bans income taxes and directs the state to immediately spend money to set up the tax collection system, regardless of whether the tax is challenged in court.
Why is this a bad policy?
- The “millionaires tax” is a Trojan horse. Supporters claim this tax targets only the ultra-wealthy, but history shows this is never the case. Once the tax structure is in place, the Democrat majority can easily lower the threshold to capture “high earners” and eventually the middle and lower classes. This is just the starting point for a broad statewide income tax.
- Democrat lawmakers admit it will expand. When asked whether the public should assume this tax will not affect them by 2030, a Democratic lawmaker answered honestly, “You shouldn’t.” The goal is to get a foot in the door.
- Hurts Washington’s competitiveness and threatens jobs. States without income taxes consistently outperform those with income taxes in population growth, job creation, and economic expansion. This proposal would make Seattle among the cities with the highest combined state and local income and payroll tax burdens in the nation, making it harder to attract employers and investment.
- Ignores the real problem: spending, not revenue. Washington does not have a revenue problem; it has a spending problem. This proposal comes just one year after the largest tax increast in state history.
- Undermines voter intent and constitutional protections. Washingtonians have rejected income taxes at the ballot box 10 times. Courts have consistently treated income as property under the state constitution, requiring uniform taxation. This bill attempts to bypass both legal precedent and voter will, redefining income taxation.
- Creates long-term instability in state finances. Income taxes fluctuate heavily with economic cycles, making budgets less predictable and increasing pressure for future tax hikes during downturns.
- Sets the stage for broader income taxation. The legislation explicitly amends existing law to exempt itself from Washington’s income tax prohibition. Once this framework is in place, future legislatures can easily lower thresholds, raise rates, or expand who pays.
Bottom line
SB 6346 is bad legislation that opens the door to a permanent, statewide income tax. It threatens small businesses, penalizes marriage, targets public pensions, and ignores the message sent by tens of thousands of citizens who opposed it. Instead of fixing the state’s spending habits, this bill demands more from taxpayers and sets the stage for future rate hikes on all Washingtonians.
The data is clear
Over the past five years, states without income taxes have outperformed states with income taxes. The Democrats’ plan to impose a state income tax on Washingtonians is a move in the wrong direction.
In the news:
Last updated: April 16, 2026 - 10:52 am
Timeline:
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Signed into law by Gov. Bob Ferguson on March 30
- Bill takes effect on June 11, 2026
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Passed the full House chamber on March 9
- Passed with a vote of 51-46-1
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Executive action taken (moved from committee) in the House Finance Committee at 8:00 a.m. on Feb. 27
- Voted out of committee (9-6)
- Watch the executive session on TVW
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Public hearing in the House Finance Committee at 8:00 a.m. on Feb. 24
- Send a comment to your state legislators on your position.
- Sign in to testify (in person or remotely).
- Submit written testimony.
- Note your position for the legislative record.
- Get email notifications on this bill.
- Watch the committee hearing on TVW.
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Referred to the House Finance Committee on Feb. 17
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Passed the full Senate chamber on Feb. 16
- Vote (27-22)
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Executive action taken (moved from committee) in the Senate Ways & Means Committee at 10:30 a.m. on Feb. 9
- Voted out of committee party-line (14-9)
- Watch the executive session on TVW
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Public hearing in the Senate Ways & Means Committee at 1:30 p.m. on Feb. 6
- Send a comment to your state legislators on your position
- Sign up to testify (in person or remotely)
- Submit written testimony
- Get email notifications about this bill
- Watch the committee hearing on TVW
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Referred to the Senate Ways & Means Committee on Feb. 4
