Source: Fortune
Summary
Washington state has passed a millionaires tax bill, which would create the first income tax in the state’s history. The bill imposes a 9.9% tax on personal income above $1 million annually, affecting roughly 21,000 filers. The tax is projected to generate $3.5 to $4 billion per year once it takes effect in 2029. The bill also includes tax relief for everyone else, such as sales tax exemptions on diapers and over-the-counter medications. The passage of the bill is seen as a significant step in a wider national push to tax extreme wealth.
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The numbers tell one story. Amazon, Microsoft, and Boeing are now part of Washington’s economy, but the state’s tax code is still based on an agrarian and timbered economy. The top 1% of earners in Washington pay just 4.1% of their income in state and local taxes, while the bottom 20% pay 13.8%. Rep. Brianna Thomas says the economy has outgrown the code and that it’s unfair for those who have the most to pay the least, and those who have the least to pay the most. The bill’s passage is not without controversy, with billionaire Howard Schultz announcing he is leaving Seattle for Miami.
One thing is clear: the wealthy are not happy about the tax.
Author: Evan Null
