Washington state has no income tax. It just passed one for millionaires that could be a model for other states

"I think it's important for people who have higher income to pay a fair share, which, in my mind, means we should get rid of loopholes and super tax advantages. Those who have [wealth], they do have a social contract-unwritten, but important-to the whole."

"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. The so-called millionaires tax could raise up to $4 billion annually for the state, revenue that Governor Bob Ferguson has said could go toward free breakfast and lunch for students, and to working families through a tax credit."

"Individuals' effective tax rates will actually be lower than that rate, because the 9.9% applies only to any income above $1 million. On a $1.2 million income, for example, only $200,000 is subject to that tax."

Washington state, which currently has no income tax, will introduce a 9.9% tax on income exceeding $1 million beginning January 1, 2028. The tax could generate up to $4 billion annually, with Governor Bob Ferguson pledging to direct revenue toward free breakfast and lunch programs for students and tax credits for working families. This legislation represents part of a broader legislative effort to address wealth inequality and prevent wealth concentration. Some wealthy individuals, including members of Patriotic Millionaires, support the measure as overdue. The effective tax rate for individuals will be lower than 9.9% since the tax applies only to income above the $1 million threshold.

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