Six months in, Democrats are already arguing over how far down they can push Washington’s new income tax.
The Millionaires-Only Tax Was Never Really About Millionaires
Remember when Democrats insisted Washington’s new 9.9% income tax was only about millionaires?
Apparently, that promise had an expiration date.
State Rep. Cindy Ryu, now running for the state Senate, says Washington should consider lowering the threshold to $250,000 in net household income. Her Democratic opponent, incumbent Sen. Jesse Salomon, thinks the next step should have been $750,000.
So much for “millionaires only.”
Both Democrats are openly discussing expanding the tax to households earning far less than $1 million — exactly what critics warned would happen.
And Ryu’s argument is especially revealing. She acknowledged that wealthy taxpayers could leave Washington because of the tax, then essentially suggested spreading the burden to keep the revenue flowing.
That’s not a tax on “the rich.” That’s the beginning of a much broader income tax.
It also exposes the promises made by Democrats who pushed the original tax through. Gov. Bob Ferguson said he wouldn’t support taxing non-millionaires. House Majority Leader Joe Fitzgibbon said lawmakers weren’t considering lowering the threshold.
Now two Democrats are publicly debating how much lower it should go.
And when Republicans tried to lock the $1 million threshold and 9.9% rate into law, Democrats rejected the amendment without discussion.
Funny how quickly “millionaires only” becomes “maybe $750,000” — or “maybe $250,000” — once the tax is safely on the books.
Initiative 645 would repeal the tax altogether. Voters will get the chance to decide whether that original promise is worth anything. Read more at Seattle Red.
Judge Knocks Down Washington’s Sheriff Power Grab
A Thurston County Superior Court judge has struck down several major provisions of Washington’s new sheriff law, ruling that lawmakers exceeded their authority in imposing qualifications and restrictions on elected sheriffs.
The law raised the minimum age for sheriff to 25 and imposed education and law-enforcement experience requirements. Judge Christine Schaller ruled those qualifications went beyond what the Legislature could reasonably impose on a constitutionally elected office.
She also rejected provisions allowing the Washington State Patrol to determine whether sheriff candidates were eligible, finding that the law improperly handed an executive-branch agency authority over eligibility questions that belong in the courts.
The ruling also struck down provisions dealing with sheriffs’ speech and associations, finding the law’s use of the term “extremist organizations” was too vague and could improperly burden protected political speech and association.
Several sheriffs involved in the lawsuits argued the law shifted power away from voters and toward unelected state officials. The state disagrees and plans to appeal.
Not everything was struck down. Schaller upheld restrictions on what people deputized by sheriffs can do unless they are certified peace officers.
For Washington Democrats who pushed the legislation as a way to “strengthen” oversight of sheriffs, the ruling raises a pretty fundamental question: how much authority should Olympia have over locally elected law-enforcement officials — and how much should remain with the voters who elected them? Read more at The Center Square.
Washington’s Minimum Wage Keeps Climbing — So Does the Cost of Doing Business
Washington’s minimum wage is going up again.
Starting January 1, 2027, the statewide minimum wage will increase 3.5% to $17.73 an hour, up 60 cents from the current $17.13. Washington already has the highest state minimum wage in the country.
And that’s just the statewide rate.
Seattle’s minimum wage will jump to $22.14 an hour next year.
But the cost of Washington’s labor rules doesn’t stop with minimum-wage workers.
The higher minimum wage also increases the salary threshold for workers who can be classified as exempt from overtime. For businesses with 51 or more employees, that threshold rises to $92,196 a year in 2027. Smaller businesses will face a threshold of $82,976 under the new rate.
So businesses aren’t simply dealing with a 60-cent increase for minimum-wage employees. Washington’s wage rules can push up costs elsewhere on the payroll, too.
And naturally, when government mandates that the cost of employing people keeps rising, businesses have to make their own decisions about how to respond — whether that’s raising prices, cutting hours, changing staffing or absorbing the additional cost.
Washington lawmakers can keep celebrating bigger wage numbers.
Businesses still have to pay the bills. Read more at the Washington State Standard.
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