Taxing the rich to fund schools, health care, and child care

A proposed tax on millionaires would help balance Washington’s upside down tax code and fund essential services for working families

OLYMPIA, WA (February 4, 2026) — Democrats in the state legislature introduced legislation yesterday that would establish a modest tax on the highest earners in Washington state to help address a budget shortfall that threatens to cut funding for education, health care, and child care. The Millionaire’s Tax — SB 6346, sponsored by Sen. Jamie Pedersen and HB 2724, sponsored by Rep. Joe Fitzgibbon — presents an opportunity for the richest Washingtonians to invest in state services just like middle and lower income families already do. Ultimately the tax could both help balance a state tax code that sees working people pay a far greater percent of their income in taxes than the wealthy and provide reliable funding for vital public services that support a thriving economy.

The current proposal is a 9.9% tax applied to Washington residents with more than $1,000,000 a year in annual earnings. Advocates estimate about 20,000 Washingtonians would pay this tax, approximately .25% of residents in the state. Still, such a tax could bring in around $3.5 billion in revenue annually. As written, most of the revenue collected would be allocated to the general budget fund, which is primarily used to fund K-12 education, health care, higher education, and human services, like child care and other supports for kids and young families.

Union members rallied for a fairer tax code at the State Capitol during the 2025 legislative session.

The legislation also includes avenues for lowering the tax burden on working families, by eliminating sales tax on hygiene products (think shampoo and toothpaste) and expanding the Working Families Tax credit. Small businesses would also see tax relief, with 65% no longer paying business and occupation tax on gross receipts (broadly, a business’ total income before any deductions). And about 5% of the tax revenue would be given to counties to fund public defenders.

“Washington families are concerned about affordability and keeping our economy strong, and businesses are too,” said sponsor Fitzgibbon in a news release. “By reforming our outdated tax code, we’re helping make life more affordable for working families and promoting our state’s economic competitiveness.”

Requiring the ultrawealthy to invest in Washington just like the rest of us is a popular notion with voters. A recent poll found that 61% support a 9.9% tax on annual incomes over $1 million, with only 29% opposed. Support is bipartisan; 54% of polled Republicans support a tax on those making a million or more, as do 52% of independents. And in 2024, voters in all of Washington’s congressional districts voted down a millionaire-funded attempt to gut the state’s Capital Gains tax, reaffirming that taxing the rich is a popular policy state-wide.

SB 6346 will be heard in the Senate Ways & Means committee on Friday at 1:30 p.m.

TAKE A STAND: register your support for taxing millionaires to fund public services by signing in ‘PRO’ on SB 6346. Here’s how:

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