Washington Supreme Court blocks referendum on millionaires' tax

Key Points:

• The Washington State Supreme Court unanimously ruled that the new millionaires’ tax, which imposes a 9.9% tax on households earning over one million dollars, is necessary for state government funding and exempt from a public referendum.
• Opponents of the tax, including Brian Heywood of Let’s Go Washington, argue the ruling strips voters of their constitutional right to challenge taxes and sets a precedent allowing the legislature to block referendums on taxes.
• Former Attorney General Rob McKenna, leading a legal challenge against the tax, contends it violates the state constitution and could pave the way for broader income taxes at state and local levels if upheld.
• Washington State Attorney General Nick Brown and Senate Majority Leader Jamie Pedersen believe the 1933 Supreme Court ruling banning state income tax was incorrect, supporting reconsideration while emphasizing the current legislature has no plans to expand the tax beyond millionaires.
• Pedersen states the millionaires’ tax addresses funding shortfalls in education and healthcare and aims to correct the regressive nature of the current tax system, which disproportionately impacts lower-income residents.