Democrats Consider Breaking a Taboo in Washington State: A Millionaires Tax

NYT Homepage

by Anna Griffin

February 23, 2026

AI-Generated Deep Dive Summary

Washington State, home to tech billionaires like Jeff Bezos and Bill Gates, is considering a significant shift in its tax policies after years of resisting income taxes. Known for its progressive social policies but conservative-style tax code, the state is now grappling with growing income inequality and concerns about public service cuts. Lawmakers are proposing a "millionaires tax," which would impose a 9.9% annual tax on personal earnings over $1 million—a move that could generate $3.7 billion annually. This proposal marks a potential turning point for Washington, one of nine states without an income tax. The idea has gained traction despite long-standing opposition, with critics arguing that the lack of income taxes has been a key factor in attracting both tech moguls and families seeking lower tax burdens. However, frustration over wealth inequality and fears of slashing public services have pushed the issue to the forefront of state politics. The proposed millionaires tax aligns more closely with West Coast standards than radical changes. For instance, Oregon already imposes a 9.9% tax on incomes above $125,000

Verticals

newsgeneral

Originally published on NYT Homepage on 2/23/2026