WA Democrats Question New Income Tax Ahead of Repeal Vote

Washington's new 9.9% income tax is raising questions about implementation, potential loopholes and whether the millionaire's tax could eventually expand to more households. Meanwhile, Washington voters will decide Initiative 645 on November 3, which could repeal the income tax before it takes effect. The new Washington income tax applies to taxable income exceeding $1 million, beginning with income earned in 2028 and first paid in 2029. During a recent meeting of Washington's Income Tax Advisory Work Group, lawmakers and tax experts discussed complications involving safe-harbor protections, business partnerships, compliance rules and tax avoidance. State Sen. Noel Frame raised concerns about ensuring wealthy taxpayers cannot use sophisticated legal and accounting strategies to avoid paying the tax while smaller businesses face additional burdens. The discussion also comes amid speculation about whether lawmakers could eventually lower the $1 million income threshold, potentially expanding the 9.9% tax to more Washington households. Those proposed lower thresholds are not part of the current law. Washington voters will have their say on November 3 through Initiative 645, which would repeal the state's new individual income tax provisions. Follow The Center Square for Washington income tax news, I-645 election coverage, taxpayer issues, state government and economic policy reporting. Want the next important update by text? Get the Washington state government and policy developments worth your attention sent straight to your phone. Text TCSWA to 206-944-3016 or sign up here: https://joinsubtext.com/c/thecentersquarewa Msg & data rates may apply. #WashingtonIncomeTax #MillionairesTax #WashingtonTaxes #I645 #Initiative645 #IncomeTax #TaxReform #NoelFrame #WashingtonElection #WashingtonState #WashingtonPolitics #TheCenterSquare #WashingtonInFocus Copy hashtags