Former Washington AG will spearhead lawsuit against ‘millionaires tax’

Just hours before Governor Bob Ferguson signed the income tax on high earners (Senate Bill 6346) into law, the Citizen Action Defense Fund (CADF) announced a lawsuit challenging its constitutionality, led by former Washington State Attorney General Rob McKenna. The new law imposes a 9.9% tax on annual household income exceeding $1 million, estimated to generate $3.5 billion annually, starting in 2028. Democrats argue the tax is necessary for fairness and funding essential services, while Republicans fear it could expand to affect more residents.

CADF contends the tax violates the state constitution’s uniformity requirement and limitations on property taxation, citing long-standing legal precedent. Additionally, Let’s Go Washington announced a referendum to repeal the tax, and the Washington State Republican Party plans an initiative to do the same. Governor Ferguson maintains the tax is constitutional and aims to address Washington’s regressive tax structure.

Anti-tax activist Tim Eyman predicts the law will ultimately be overturned, and the upcoming election of five Supreme Court justices presents an opportunity for voters to influence the court’s decision on the matter. The legal battle over the ‘millionaires tax’ is expected to be contentious and prolonged.

(Source：{{author}})