OLYMPIA — State lawmakers introduced a measure Thursday to tax Washingtonians who have more than $250 million.
The state would tax 1% of the fair market share of a Washington resident’s wealth, like stocks, bonds or other assets, but the first $250 million would be exempt.
The move is part of a nationwide campaign, unveiled this week, to tax wealthy residents. Washington is joining state legislatures in California, Connecticut, Hawaii, Illinois, Maryland, Minnesota and New York in similar efforts.
“We are here to put billionaires and ultra millionaires on notice that it is time that they pay what they owe and that state legislators are the ones to make them do it,” said Sen. Noel Frame, D-Seattle, who is sponsoring the bill.
In Washington, which has no income tax and is home to some of the world’s wealthiest people, the proposal is another attempt to balance a tax structure that critics say requires low- and middle-income residents to pay a disproportionate share.
Washington does have property and estate taxes, but the property tax exempts intangible property like stocks and bonds.
The proposal lands amid an ongoing battle on another state tax. Next week, the Washington State Supreme Court is due to hear oral arguments in a lawsuit challenging a new tax on capital gains passed by lawmakers in 2021. That measure taxes profits greater than $250,000 on the sale of stocks, bonds and other investments.
A wealth tax of 1% with $250 million exempted could raise about $3 billion annually, according to an October analysis by the state Department of Revenue.
According to this year’s proposal, the money raised through the tax would go to education, housing, disability services and tax credits for low- and middle-income families.
Washington lawmakers proposed but did not pass a similar tax in 2021, on intangible assets of $1 billion and more. That proposal was reintroduced in last year’s short session but didn’t pass.
___
(c)2023 The Seattle Times
Visit The Seattle Times at www.seattletimes.com
Distributed by Tribune Content Agency, LLC.