Washington State Proposes Millionaire Tax

0:00On March 11th, Washington state lawmakers are pushing a big change by proposing a 9.9% tax on income over $1 million. This would be the state's first broad personal income tax ending decades without one. The House just approved the bill after a long debate and now it heads to the Senate and Governor Bob Ferguson for final approval. If it passes, the tax starts in 2028 with payments due in 2029. This move fits into a national trend where states like California are eyeing taxes on the super-rich. California has a ballot idea called the 2026 Billionaire Tax Act which would hit a 5% one-time tax on folks with net worth. Over $1 billion. Similar ideas are popping up in places like Maryland, Minnesota, and New Jersey. Critics worry these taxes will push wealthy people to leave for low-tax spots like Florida and Texas. A prime example is former Starbucks CEO Howard Schultz whose net worth is in the billions.

1:00He's moving from Washington to Miami after buying a luxury penthouse there, though his charity work stays in Seattle. Supporters point out the tax would only touch about 0.5% of residents, the highest earners. They say it could bring in billions each year for schools, healthcare, housing, and help for working families. As states compete for jobs and investment, these tax battles could shift where America's riches choose to live and build their futures.