GoKawiilThe bill would tax earnings over $1 million at 9.9%, which could raise billions annually. Expect a big fight from the “wealth defense industry.” People who live and work in Washington state don’t currently pay any income tax. But in a few years, a small group of residents will be subject to one: Washington lawmakers recently passed a bill that would impose a 9.9% tax on income earned above $1 million, which goes into effect on January 1, 2028.
Washington state has no income tax. It just passed one for millionaires that could be a model for other states
Why This Matters
Washington state's new millionaire income tax marks a significant shift in its tax policy, potentially setting a precedent for other states to follow. This move could influence how states approach taxing high earners and address income inequality, impacting both policymakers and wealthy residents. For consumers and the tech industry, it signals ongoing debates about fair taxation and the redistribution of wealth in the U.S.
Key Takeaways
- The bill taxes income over $1 million at 9.9%, starting in 2028.
- It aims to generate billions in revenue, potentially funding public services.
- This policy could serve as a model for other states considering similar taxes on high earners.
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