Washington State's New Millionaire Tax

0:00On March 12, Washington State Senate just passed a 9.9% tax on folks earning over $1 million a year. Governor Bob Ferguson plans to sign it into law soon. This new measure targets only about 0.5% of taxpayers and aims to bring in billions each year starting in 2028. With. First payments due in 2029. The money would go toward education, health care, housing, and tax credits for working families. Plus, it would scrap sales taxes on things like shampoo. Washington has never had a state income tax before, despite voters turning down similar ideas many times over the years. Democrats pushed it through, pointing to strong public support amid frustration with federal policies. Republicans argue it won't fix budget issues and could drive away big companies like Starbucks. On the same day the bill passed, Starbucks founder Howard Schultz announced he's moving his family from Seattle to Florida for retirement after. Decades there. He didn't mention the tax.

1:01Expect pushback with a likely ballot measure to repeal it this November, and legal fights already in the works over state tax rules. This could reshape Washington's finances for years ahead.