How To Fix Washington's Regressive Tax Code

Washington’s tax system ranks among the nation's most regressive, placing a disproportionate financial burden on low-income residents who pay a higher share of their earnings in sales taxes compared to the wealthiest one percent. To address this, the state legislature passed a "millionaire's tax"—a 9.9% marginal tax on annual income exceeding one million dollars—aimed at funding essential services like K-12 school meals and expanding the Working Families Tax Credit. However, this policy faces a repeal challenge via Initiative 645, spearheaded by hedge fund manager Brian Haywood. Fatema Boxwala of Tech for Taxes and Iana Mae Abinales of the Washington State Budget and Policy Center argue that such progressive revenue measures are vital for state fiscal resilience, countering corporate narratives that threaten relocation in response to taxation. Shifting toward ability-to-pay models remains essential for achieving long-term economic equity and funding necessary community resources.