Washington lawmakers are advancing a proposal aimed at reshaping the state’s tax system to improve fairness and affordability for working families. Supporters of the High Earners Income Tax say the measure would modernize Washington’s nearly century-old tax structure by requiring the state’s highest-earning households to contribute more while providing relief for lower- and middle-income residents.
The legislation is projected to generate approximately $3.7 billion annually, with funding directed toward K-12 education, health care, higher education, public defense and public services.
In addition to raising revenue, the proposal includes tax relief measures. These include expanding the Working Families Tax Credit to residents ages 18 and up, potentially benefiting an additional 120,000 Washingtonians; doubling the Small Business Tax Credit by eliminating Business and Occupation taxes for businesses earning under $250,000, impacting roughly 150,000 small businesses; and removing sales tax on grooming and hygiene products. Proponents say the plan is designed to create a more equitable tax system while improving affordability and sustaining public investments.