Ferguson Says Millionaires Tax Proposal Could Slip to 2027

Bob Ferguson is warning that a proposed income tax on high earners may not pass before the end of the legislative session.

The first-term Democrat said Tuesday that disagreements remain over how to use revenue from the so-called “millionaires’ tax.” Lawmakers have nine days left in the session, which ends March 12. Ferguson says he’s hopeful a deal can be reached but is prepared to revisit the issue next year if needed.

The proposal, Senate Bill 6346 would impose a 9.9 percent tax on household income above $1 million a year. Supporters estimate it would generate about $3 billion annually, with collections beginning in 2029.

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Jamie Pedersen, the bill’s prime sponsor and Senate majority leader, says he’s confident lawmakers will reach agreement. House Finance Chair April Berg also says the bill has a strong path forward, though changes are expected before a full House vote.

Ferguson has insisted that a majority of the revenue be dedicated to tax relief for working families and credits for small businesses. Lawmakers say they’re considering setting aside between 25 and 40 percent for that purpose.

Republicans oppose the measure, arguing there’s no urgency since it would not take effect for three years. The proposal is also expected to face legal challenges if approved.