The Daily Briefing – October 12, 2026

Olympia Democrats are counting billions in new tax revenue. A new report says they’re ignoring the billions in economic activity their tax could cost.

 

New Report: Washington’s Millionaire Tax Could Cost Thousands of Jobs and Billions in Economic Activity

The Washington Policy Center and The Buckeye Institute are out with a new report warning that Washington’s 9.9% income tax on earnings above $1 million could mean fewer jobs, fewer businesses, and billions less in economic activity.

According to Washington Tax Gamble: An Evaluation of Washington’s Income Tax Hike, the tax could result in 7,800 fewer full-time jobs in 2028, rising to 18,800 fewer by 2036. The report also estimates 1,400 fewer new employer businesses annually and $4.9 billion less in economic output in 2028.

Meanwhile, the state is projected to collect $2.6 billion in 2029 and $3.3 billion in 2036. The report estimates that for every additional dollar the state collects, Washington’s economy could produce up to $2.50 less by 2036.

WPC also warns that the law leaves the door open to lowering the $1 million income threshold, with some lawmakers already advocating a $250,000 threshold—potentially expanding the tax’s economic impact.

The report argues that Olympia’s budget problems stem from spending growth, not simply a lack of revenue. Washington has approved spending beyond expected tax collections in each of its last three budget cycles, according to WPC.

The takeaway? More tax revenue for Olympia doesn’t necessarily mean a stronger economy for Washingtonians. Read more at the Washington Policy Center.

Washington Supreme Court Race Gets Political as Judges Clash Over GOP Support

Washington Supreme Court Position 4 candidates Sean O’Donnell and Ian Birk clashed Friday over political endorsements and the court’s responsibility to protect voters’ initiative rights.

Birk has attacked O’Donnell for receiving Republican support, prompting 62 current and former judges to call the criticism inappropriate. Yet O’Donnell also has endorsements from Democratic former governors Christine Gregoire and Gary Locke, exposing the selective nature of Birk’s concerns about political backing. Birk insists voters deserve to know who supports judicial candidates, while saying he avoids examining donors—a convenient distinction that raises questions about how consistently he applies his own standards.

The bigger concern is Birk’s defense of the state Supreme Court’s decision to overturn I-2066, the voter-approved measure protecting natural gas as an energy choice. Although both candidates affirmed the importance of initiative rights, Birk defended the court’s use of the Constitution’s single-subject rule and declined to second-guess its ruling. In other words, he can scrutinize a rival’s endorsements, but when the court invalidates a measure approved by Washington voters, he’s content to defend the process rather than confront the result.

With ballots arriving soon, voters deserve to know whether their next justice will stand up for the public’s right to pass initiatives—or defer to a court that has already struck one down. Read more at The Center Square.

Kotek’s Reelection Bid Is Still on Shaky Ground

Two new polls show Oregon Gov. Tina Kotek and Republican challenger Christine Drazan locked in a tight race. A DHM Research poll commissioned by The Oregonian gives Kotek a narrow 46%-44% lead, well within the 4.2-point margin of error. Kotek’s own campaign poll shows her ahead 46%-42%.

Kotek’s campaign is trying to paint Drazan as an out-of-touch MAGA extremist, but there’s a problem: Kotek’s own favorability rating is just 38% in the DHM poll, nearly as low as Trump’s 37% in Oregon. Apparently, blaming Trump isn’t quite the political magic trick Democrats hoped for.

Drazan’s team brushed off Kotek’s internal poll, noting it took five months for the incumbent to produce one showing her ahead. With 7% of voters still undecided in the DHM poll, the race remains wide open—and Republicans have an opportunity to end nearly four decades without a GOP governor in Oregon. Read more at Seattle Red.

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