THE MILLIONAIRES TAX WILL HELP FUND A BETTER FUTURE FOR WASHINGTON'S CHILDREN
Washington’s tax code has long been one of the most regressive in the country. For years, we ranked dead last, until the creation of the Working Families Tax Credit and the capital gains tax moved us up a single spot, just ahead of Florida. A regressive tax system asks households with lower incomes to pay a larger share of their income in taxes than wealthier households. A progressive tax system does the opposite, requiring those with greater financial resources to contribute a larger share.
In Washington, our tax code remains deeply regressive
In our state, families with the lowest incomes pay nearly 14% of their income in taxes while the top 1% pay just over 4%. That means that families working hardest to afford basics like housing, child care, groceries, transportation and health care pay a greater percentage of their income in state and local taxes, like sales and property taxes, than those with the greatest financial means.
This isn’t just inequitable, it’s unsustainable. When working families carry a disproportionate share of the tax burden, it becomes nearly impossible to build stability, save for the future, and get ahead. It also means our state will continue to struggle with recurring budget pressures due to lack of stable, reliable revenue necessary to invest in critical needs like public education, health care, housing, and infrastructure.
The Millionaires Tax can help change that
With the passage of SB 6346, also known as the Millionaires Tax, earlier this year, Washington has taken a monumental step toward righting our upside-down tax code.
By taxing only annual income over $1 million, the tax asks those who have benefitted most from Washington’s economy to contribute more toward the public investments that benefit us all. In doing so, it will reduce the pressure on working families while creating a more sustainable foundation for funding essential services.
The stakes are especially high for children. In a series of data briefs published last year, we discuss how growing up in poverty can have long-term effects on children’s development, health, and academic achievement. Creating a fairer tax system is about more than balancing budgets; it’s a value statement that says we care about families having the resources they need to thrive, and we want to make sure that the programs children depend on have dependable funding for years to come.
Dr. Soleil Boyd (left) speaks at the No on I-645 campaign alongside Governor Bob Ferguson (right). Photo: Public News Service
We must reject I-645 and keep moving toward a more equitable tax code
Unfortunately, some of our state’s wealthiest residents are intent on not paying their share for the programs and services that benefit us all. Last month, Initiative 645 was officially added to the November ballot. Spearheaded by multi-millionaire hedge fund manager Brian Heywood and Let's Go Washington, I-645 aims to repeal the Millionaires Tax.
In response, Children's Alliance has joined a coalition of over 100 groups, including labor unions and community organizations, to launch the No on I-645 campaign. Together, we will work to defeat this initiative and ensure Washington continues on a path toward a more equitable tax code. Learn more about this campaign and how you can get involved on the No on I-645 website.