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Gov. Bob Ferguson says Senate 'millionaire's tax' contains useful measures but returns too little to working families
Summary
At a brief press conference, Gov. Bob Ferguson praised parts of the Washington Senate's millionaire's tax proposal—eliminating an age limit on the Working Families Tax Credit, exempting hygiene products from sales tax, and a small-business tax break—but said the roughly 7% in direct relief is —not close' to what he wants and urged larger tax relief for families and small businesses.
Gov. Bob Ferguson on short notice told reporters that while he supports parts of the Washington Senate's millionaire's tax proposal, the plan does not send enough money back to working families and small businesses. Speaking at a brief press conference called by the governor's communications director, Brianna Aho, Ferguson said the Senate proposal is —a good start' but that the roughly 7% of new revenue that would be returned directly to residents —is not close' to his target.
Ferguson singled out three elements of the Senate plan that he supports because they put dollars back in residents' pockets: eliminating an age limit on the Working Families Tax Credit (which he said costs about $44,000,000 a year), a sales-tax exemption for hygiene products (about $76,000,000 a year), and tax breaks targeted at small businesses (about $104,000,000 a year). "Those three proposals total about $230,000,000, or about 7% of the total revenue that we'd be receiving," Ferguson said.
He repeated his long-standing call to expand the Working Families Tax Credit, noting the program sends checks of roughly $300 to $1,300 to qualifying households but currently excludes many working families. He urged both broader eligibility and larger benefit amounts.
Ferguson proposed far larger small-business relief than the Senate included, saying the state should provide an unprecedented package of support and suggesting $1,000,000,000 in tax relief for small businesses. He said the Senate's version devotes about $104,000,000 and that "we have some negotiating to do."
On sales taxes, Ferguson said he supports the Senate exemption for hygiene products and wants to expand exemptions to essential baby items such as diapers, citing a national survey he said shows 28% of parents reported skipping meals to afford diapers.
Reporters asked a range of detailed questions. When asked about a proposed necessity clause and a 5% carve-out for public defender costs in both versions of the bill, Ferguson said it was too soon to take a public position and that he and his team are discussing details directly with House and Senate leaders and staff. Asked whether he would accept a specific percentage of revenue devoted to tax relief, Ferguson declined to name a number but repeated that the Senate's roughly 7% allocation "is not close."
On a question about whether the proposal might reach the Washington Supreme Court if passed, Ferguson said conversations have occurred and predicted "there'll be a court challenge, and there'll be a vote of the people," but added his immediate focus is on crafting legislation he can sign. He said he has also held conversations with the business community on potential impacts such as player free-agency decisions and wants to structure the plan carefully.
Ferguson said he expects continued negotiation as the measure moves to the House and indicated he may hold additional events to highlight working families who do not currently qualify for the tax credit. "We're gonna continue talking," he said. "I have no doubt about that."
