Friends and neighbors,

When this year’s 60-day session started in January, my top priority was introducing and passing the most substantial progressive tax reform in our state’s history. I heard loud and clear from people in the 43rd District who are struggling with affordability and frustrated with our broken tax system that we needed dramatic change. After months of planning and many hours of debate, I’m incredibly proud to report that the Millionaires Tax has passed the Legislature and will be signed into law in the coming days.

For 93 years, working people in our state have lived with a tax system that is broken and unfair. The Millionaires Tax sets us on a path to ask about 20,000 of the wealthiest households in our state to contribute more so we can increase funding for public schools, health care, higher education, and other essential services we all rely on.

In the simplest terms, the Millionaires Tax is a 9.9% tax on household income above $1 million per year. In addition to providing support for basic services, it will allow the state to reduce taxes for families across the state by:

  • Eliminating sales tax on personal care products, baby and adult diapers, and most over-the-counter medicine. Since there is already no sales tax on groceries, that means just about everything in a family’s shopping cart will be tax-free.
  • Exempting about 70% of all Washington businesses from the Business & Occupation tax.
  • Setting aside 5% of annual tax proceeds for the Fair Start for Kids Act, which increases access to early learning programs and provides resources to support child care and early learning providers.
  • Providing free school breakfast and lunch to all public school students.
  • Expanding eligibility for the Working Families Tax Credit to 460,000 additional households, including young adults and seniors, helping lower-income families.

In the 43rd Legislative District, roughly 1,500 wealthy households would pay more under the legislation, and I’ve heard support for this plan from many of those very fortunate people. People in our community are struggling to afford rent, food and other basics. They also understand our state’s tax structure is upside-down. Households with income in the bottom 20% pay 13.8% of their total income in taxes, while those with income in the top 1% pay only 4.1%. Only Florida has a more regressive tax structure than Washington.

Rising costs from tariffs, coupled with our state’s nearly century-old tax structure, make life unaffordable for people here in Seattle and across Washington. And make it impossible for our state budget to keep up with the needs of Washington families. I share the anger and frustration of so many people who are in disbelief of the Trump administration’s massive tax cuts for the ultra-wealthy at the expense of health care and food assistance for everyone else. I am eager for change too, which is why I worked with my colleagues night and day to get this historic policy passed.

There are more hurdles to come with likely challenges to the law in court and at the ballot, but I believe the Millionaires Tax will prevail and set Washington on a new path to ensure everyone has a fair chance to live, work, and raise a family with dignity.

I was proud to vote for several other bills that passed this year to help people struggling with affordability. Here are a few highlights:

  • HB 1903 establishes a statewide program to provide ongoing energy bill assistance to eligible low-income households. The program will work in partnership with gas and electric utilities to ensure assistance is reflected directly on customers’ monthly bills.
  • SB 6162 expands the senior citizen property tax relief program to help an additional 30,000 Washingtonians stay in their homes and creates a standard $7,500 deduction for those who qualify.
  • HB 2479 strengthens Washington’s response to wage theft and enforcement by allowing workers to recover unpaid wages more quickly and fairly while their claims are being processed.

Thank you for taking the time to read this newsletter. I’m proud of the work we accomplished this session, and I’ll be sending newsletters in the coming weeks highlighting progress in key areas that will improve life here in the 43rd District and across the state.

Please don’t hesitate to reach out to me with any questions at Jamie.Pedersen@leg.wa.gov.

Best wishes,

Jamie