Ferguson Fires Back At Income Tax Critics As Legal Fight Escalates

Washington State’s new income tax is now facing a major legal challenge—and the fight could head all the way to the Supreme Court. A lawsuit filed by the Citizen Action Defense Fund, alongside former Washington Attorney General Rob McKenna, is challenging the constitutionality of the state’s newly passed income tax. The case, filed in Klickitat County Superior Court, centers on a key legal question: Is income considered property under Washington law? Supporters of the tax argue it’s needed to fix what they call a regressive tax system. Critics, including legal experts and former officials, say the law may violate the state constitution and could open the door to broader income taxes in the future. The legal battle is already intensifying, with: A former Democratic State Supreme Court justice joining the lawsuit Small business groups warning of economic impacts A potential referendum fight brewing at the Washington State Supreme Court Lawmakers and Governor Bob Ferguson defending the policy With multiple lawsuits, possible ballot measures, and high-stakes constitutional questions, this story is rapidly evolving.