House Finance Committee Hears Hours of Testimony on SB 6346, the "Millionaire's Tax"

SEATTLE — The Washington House Finance Committee heard hours of testimony on Tuesday, Feb. 24, for Senate Bill 6346, an engrossed substitute that would impose a 9.9% tax on household income above a $1,000,000 deduction and take effect Jan. 1, 2028, with returns due in 2029.

Tracy Taylor, staff to the committee, told members the bill begins with federal adjusted gross income, adjusts for capital gains and certain deductions, and allows pass-through entities to elect to pay the tax at the entity level. Taylor summarized key provisions and the fiscal estimate: an estimated $2,530,000,000 increase in state revenues in fiscal year 2029 and $3,210,000,000 in fiscal year 2030, with associated local revenue decreases and Department of Revenue implementation costs. She described available credits and deductions, including a per-individual standard deduction capped at $1,000,000 per household, a charitable contribution cap of $100,000 per household, credits for B&O and public-utility taxes, and a capital construction fund deduction noted in the bill text.

Sen. Jamie Peterson, the bill—s prime sponsor, said the change is intended to correct what he called an "upside down" state tax system and to raise money for public schools, higher education and health care while reducing the tax burden for lower- and…