Washington Voters Reject Initiative to Repeal State Millionaire Tax

Washington voters decided on Tuesday to keep their state's millionaire tax, rejecting an effort to repeal the measure. Fifty-eight percent of voters cast ballots against Initiative 645, which was pushed by right-wing donors and political action committees, including Let's Go Washington.

The failed $13.1 million effort to overturn the tax was led by conservative hedge fund executive Brian Heywood, who heads the Let's Go Washington PAC. Heywood told reporters in October that many wealthy individuals and business partners had left the state due to the tax policies.

The millionaire tax, which was signed into law in March, imposes a 9.9 percent tax on household income over $1 million per year. State leaders plan to use the revenue to expand eligibility for the Working Families Tax Credit, providing cash rebates of up to $1,330 to roughly 460,000 households.

Supporters of the tax argued that a repeal would jeopardize funding for public schools, universities, and human services. Gov. Bob Ferguson urged voters to reject the initiative, warning that a repeal could create a multibillion-dollar hole in the state budget and force cuts to essential child care subsidies.

Conversely, proponents of Initiative 645 argued that the tax could eventually impact a broader range of residents and discourage large charitable donations to nonprofits. Seattle Children’s CEO Christopher Longhurst noted that limits on charitable deductions in the new tax could negatively affect donations used to care for children from low-income families.

Despite the political friction and sharp legal debates over the ballot wording, initial election returns clearly demonstrated that a solid majority of Washington residents preferred to maintain the high-earner tax.