by Cynthia Stewart, Advocacy Chair Emeritus, LWV of Washington

The thorniest issue this legislative session, which pervades all others, is the revenue shortfall relative to the funding required to sustain needed services. Because Washington state has the second most regressive tax structure in the US, no way exists under the current system to raise adequate revenue.

Because new revenue is needed, SB 6346 would establish a tax on incomes exceeding $1 million annually.

The LWVWA has made SB 6346 a top priority because it affects all other proposals with any fiscal impact, and because it is consistent with the League position on taxes: Support action to obtain a balanced tax structure that is fair, adequate, flexible, and has a sound economic effect.

The state’s revenue deficit is estimated at $2.3 billion annually, beginning in 2026. This is a result of lower than previously estimated tax revenue combined with increased costs of doing business. If passed, SB 6346 would generate significant additional revenue, estimated between $1-3 billion per biennium.

It would only affect the very small percentage of the population with incomes high enough to be eligible for the tax. It would not affect 99.9% of the population.

The bill was introduced Feb. 4. The Senate Ways & Means Committee held a public hearing on it two days later and then, on Feb.9, in its executive session, passed it out of committee as a substitute.

As of press time, the bill is in the Senate Rules Committee for consideration for a Senate vote before the Feb. 17 cutoff for bills in the house of origin and then go to the House for its action. If the bill does not move from the Senate to the House on schedule, it will still be considered “necessary to implement the budget” and could be moved at any time before the end of the session when the budget is finalized.

Interest in this bill has been historic, with over 80,500 people signing in either pro or con. Thank you to League members who made the time and effort to sign in in support of the bill. And so many people signed in to testify that about half of the people signed in, including League President Karen Crowley, were not able to be heard. The president did submit her comments in writing, however.

For additional information, see the Senate staff report on the substitute bill and testimony submitted by LWVWA President Karen Crowley.