Washington State's High-Earners Income Tax Faces November Ballot Fight as Unions and Business Groups Clash Over Initiative 645

Washington State's public-sector unions have raised $7.8 million to oppose Initiative 645, a November ballot measure seeking to repeal a 9.9% income tax on annual household earnings above $1 million. The Washington Education Association leads with $3 million in contributions, followed by SEIU 775 with nearly $2 million and the state employees union with $1 million. The repeal campaign has raised $1.3 million, backed primarily by business owners and investors who argue the tax will undermine Washington's competitive standing. Governor Bob Ferguson has pledged to veto any effort to expand the tax to lower income levels.

Government employee unions in Washington state have pledged considerable resources to protect a newly passed tax on top earners from a ballot measure seeking its repeal. The state budget continues to face financial pressure despite lawmakers having passed multiple new revenue measures, among them an income tax, over the two preceding years of the governor's administration. The state legislature and Governor Ferguson. The advertisement argues that the current tax system benefits higher-income households, and that Measure I-645 would lower the tax liability for top earners while distributing those costs across the broader population; separately, the effort to repeal the recently passed income tax has received the bulk of its financing from business groups and corporate interests that oppose the measure, arguing it would threaten Washington's position among the nine states that do not levy an income tax. Some analysts point to tech sector layoffs and a rise in homes coming onto the market as signs that wealthier residents may be preparing to leave the Washington area, a view echoed by Matt McIlwain, managing director of Madrona Venture Group, a Seattle-based venture capital firm focused on healthcare, artificial intelligence and other startups, who noted that elected officials are unlikely to recognise the local-level consequences of current developments. Supporters of the I-645 measure have aired radio spots promoting that view, a position that tax advocates have pushed back on.

Washington State's High-Earners Income Tax Faces November Ballot Fight as Unions and Business Groups Clash Over Initiative 645

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Washington State's High-Earners Income Tax Faces November Ballot Fight as Unions and Business Groups Clash Over Initiative 645

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