Washington state's 'historic' millionaire tax takes aim at super-rich
5 hours ago
- #wealth-tax
- #economic-inequality
- #progressive-taxation
- Noel Frame has spent 15 years advocating for wealth taxes on the ultra-wealthy in Washington state, facing repeated failures until recent progress.
- Washington's lack of an income tax has strained public funding for education and healthcare, despite being home to tech giants like Microsoft and Amazon.
- Frame proposed a 1% wealth tax on investment income, similar to property taxes, but faced strong opposition from tech leaders like Microsoft's Brad Smith, who argued it would harm competitiveness.
- Political dynamics shifted due to a multibillion-dollar budget gap, leading to the passage of a 9.9% millionaire income tax threshold at $1 million, signed by Governor Bob Ferguson.
- Business community support grew as executives feared alternative regressive taxes more, distancing from big tech's anti-tax campaigns.
- Frame and experts see this as part of a national movement, fueled by dissatisfaction with federal policies like Trump's tax bill, which cut spending on social programs.
- Public awareness of tax inequity in Washington has increased, with data showing low-income households pay a higher tax rate than the wealthy.
- Research indicates tax flight by the wealthy is minimal, with relocation driven more by job opportunities and family than taxes.
- In California, billionaires oppose a proposed billionaire tax, though the impact of such taxes on revenue and migration remains debated.
- Washington's capital gains tax exceeded revenue expectations, suggesting the state may have more untapped wealth than previously thought.