Olympia, WA – Washington Governor Bob Ferguson stated Monday he will not sign the state Senate’s version of a millionaire’s tax proposal, demanding a greater allocation of revenue to small businesses and working families. The Senate passed the bill, SB 6346, on Monday, enacting a 9.9% tax on income exceeding $1 million annually, projected to generate $3.7 billion each year starting in 2028.
Ferguson’s announcement, made shortly after the Senate vote, signals a potential impasse as the bill moves to the House. While he supports the concept of a tax on high earners, the Governor believes the current proposal does not adequately address the needs of those most impacted by Washington’s tax structure. “Must send a significant percentage of the revenue back to Washington families and small business owners,” Ferguson said, according to reports.
The bill’s primary sponsor, Senator Jamie Pedersen, drafted the legislation following initial advocacy from Ferguson himself. The proposed tax would apply only to the portion of income exceeding $1 million, excluding the value of assets like homes. For example, an individual earning $1.2 million would be taxed on the $200,000 above the $1 million threshold.
Republicans have voiced strong opposition to the tax, arguing it could expand beyond millionaires and represents a substantial tax increase. Representative April Connors warned that the levy could eventually affect all Washington residents. “I think as the voters become more educated…they will be with us on this issue and know that this income tax is not just going to hit wealthy people,” Connors stated at a news conference Tuesday. She declined to detail the Republican strategy to oppose the bill in the House.
Governor Ferguson announced his support for a millionaire’s tax in December 2025, emphasizing that the revenue generated should be used to alleviate the burden on working families and small business owners. He cited the inequities of Washington’s tax system, where the lowest 20% of earners pay a higher percentage of their income in taxes (13.8%) than the top 1% (4.1%).
Despite his concerns, Ferguson expressed optimism that a compromise can be reached. “I sense optimistic we will get there on the millionaires tax, I do,” he said. The fate of the bill now rests with the House, where its future—and the Governor’s conditions—will determine whether it becomes law.
