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State Income Tax

Millionaires tax and Working Families Tax Credit

Governor Ferguson called for and the Legislature advanced a tax on incomes over $1 million, framed as paid by a tiny share of residents, to expand the Working Families Tax Credit, support childcare, and fund free K-12 meals. The debate centers on whether Washington should rely more on high-earner income taxation versus its traditional tax structure.

Should Washington tax incomes over $1 million to expand tax credits and family supports?

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Sources

Governor Bob Ferguson — https://governor.wa.gov/news/2026/governor-ferguson-comment-2026-legislative-session
In my State of the State, I called for something truly historic — a tax on incomes over $1 million, paid by less than one half of one percent of Washingtonians. The Legislature delivered. Now, we have a Millionaires’ Tax that sends money straight back to Washington families by expanding the Working Families Tax Credit to 460,000 additional households, and provides substantial relief for small business owners.
Washington State Standard — https://washingtonstatestandard.com/2026/01/12/was-2026-legislative-session-is-getting-underway-will-anyone-be-smiling-when-its-over
Will progressives get their income tax? Ferguson delivered arguably the session’s biggest news before the opening day gavel.
Office of Financial Management / Gov. Bob Ferguson — https://ofm.wa.gov/wp-content/uploads/Proposed_2026_Supplemental_Budget_Policy_Highlights.pdf
Governor Ferguson’s 2026 supplemental budget takes a balanced approach. It protects critical services, makes targeted cuts, and raises new revenue by closing outdated tax breaks that primarily benefit a small number of large corporations.
Positions on this issue  ·  liberal → conservative
  1. Enact a broad progressive income tax and sharply expand credits and public benefits
  2. Tax millionaires to fund Working Families Tax Credit, childcare, and free school meals
  3. Use limited high-earner levies only for temporary relief while reviewing the full tax code
  4. Avoid new income taxes and prefer spending cuts or narrower business tax changes
  5. Reject income taxes entirely and lower overall state tax burden on earners and businesses