Legislation that would create a new state tax on high‑income earners moved out of the Washington House Finance Committee on a 9–6 vote Friday morning, according to reporting by MyNorthwest. Committee records confirm that the bill now advances to the full House for consideration.

The proposal would establish a 9.9% tax on personal income above $1 million beginning January 1, 2028. Washington currently has no broad personal income tax, and supporters describe the measure as an attempt to restructure what they characterize as an increasingly unequal tax system. Opponents counter that it risks driving residents with high incomes out of the state and could weaken long‑term revenue stability.

During committee debate, lawmakers presented sharply differing views. According to the official hearing video, Representative Cyndy Jacobsen of Puyallup argued that high earners could relocate in response to the new tax, stating that such taxpayers “often have domiciles in other states that they can just change their address to.” Representative Sharlett Mena of Tacoma supported the proposal, saying it would address the heavier tax burden currently carried by working families.

Representative Alex Ramel of Bellingham told colleagues that taxing income above the $1 million threshold is necessary to support state budget obligations, including basic and higher education funding. In contrast, Representative Ed Orcutt warned that deeper financial issues remain unresolved, stating that no combination of new taxes can keep pace with what he described as persistent legislative overspending.

Committee records also show that Republicans sought to require a public referendum, but that effort was voted down. MyNorthwest reported that Orcutt cited substantial public opposition to any form of income tax in explaining his support for a statewide vote. Supporters of the bill argued that the current proposal represents a needed shift in tax structure and should move forward without referral.

If the full House takes up the bill next week, as lawmakers indicated during the hearing, the debate is expected to intensify across the state. For Southwest Washington, the proposal intersects with ongoing questions about school funding levels, local economic competitiveness, and long‑term budget planning in counties like Cowlitz, where population growth and service demands continue to rise.

Local governments would not directly administer or collect the proposed tax, but shifts in state‑level revenue policy could influence future funding formulas for education, human services, and transportation—areas of particular concern for rural and mid‑sized communities along the I‑5 corridor.

Why this matters for Cowlitz County

If enacted, the tax would fall on a small segment of Washington residents, but its budget effects could ripple statewide. State education funding—one of the bill’s stated targets—plays a major role in local district budgets from Longview to Castle Rock. Any revenue changes affecting K‑12 allocations or higher‑education access would have direct implications for families, school boards, and workforce development in the region.

Debate over tax policy also carries broader significance for Southwest Washington’s economic landscape, where lawmakers regularly weigh the balance between competitiveness, reliability of state funding, and the impacts of statewide fiscal decisions on smaller communities.

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