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The Washington millionaire tax — Senate Bill 6346 — just cleared the state Senate on a 27-22 vote, creating a 9.9% tax on income above $1 million and sending it to the House. It arrives just two years after the legislature prohibited state and local income taxes, which is why critics call it constitutionally shaky from the start.
Key Takeaways
- SB 6346, sponsored by Senate Majority Leader Jamie Pedersen, passed 27-22.
- Only two Democrats joined all Republicans in voting against it.
- The tax is 9.9% on income above $1 million; the first million is deducted before the rate applies.
- Anti-tax activist Tim Eyman was removed from the proceedings for disrupting the session.
What is Washington’s millionaire tax?
The Washington millionaire tax is a proposed 9.9% income tax on annual income above $1 million per household. Only the portion over the threshold is taxed, so someone earning $1.5 million would owe the rate on $500,000. Supporters say it would raise around $1 billion annually.
Backers frame it as shifting an “upside-down” tax code right-side up, arguing Washington has over-relied on working-class people while giving the wealthiest a special deal. The revenue is pitched toward public schools, health care, and other essential services.
Why do critics say the millionaire tax is illegal?
Because Washington voters and courts have repeatedly rejected income taxes, and the legislature prohibited state or local income taxes just two years ago. The episode argues the state has voted against this kind of tax something like ten or eleven times, which is why it’s likely to get tied up in court even if it passes.
Senate Bill 6346, sponsored by Senate Majority Leader Jamie Pedersen, passed 27-22.
Will the tax stay limited to millionaires?
That’s the fear driving much of the opposition. Critics worry the Democratic majority won’t write in language explicitly guaranteeing the tax will never apply to anyone earning under $1 million. In an informal viewer poll cited in the episode, 92% said they believe the tax will eventually reach people who make less than a million.
The threshold is the tell: a million dollars is treated as the automatic line where income becomes “fair game” to tax — a framing the host attributes to a broader progressive playbook.
Is this driving people out of Washington?
The episode argues yes, pointing to the wealthy being highly mobile. Jeff Bezos left Hunts Point for Florida; Mark Zuckerberg left California for Florida rather than face a wealth tax. The host says he’s personally moving to Oklahoma City, where the state income tax is about 4.5% and the cost of living is far lower.
The concern is a stacking effect: this millionaire tax sits on top of a recent $9-to-$12-billion tax package, a proposed statewide payroll tax, and estate taxes — some of which the legislature is already rolling back. That combination is the same one blamed for accelerating layoffs and business flight, and it echoes warnings from earlier coverage of the 9.9% rate.
What happens to the businesses that stay?
The argument is that the people taxed most heavily are the ones who own the companies and hand out paychecks — and when they leave, the tax burden shifts onto lower-income residents who can least afford it. Meanwhile the state already ranks among the most expensive in the country, with some of the highest gas prices and a documented outflow of taxpayers.
When would the tax take effect?
Under the proposal, the first payments wouldn’t be due until 2029. A related provision would exempt small businesses grossing under $300,000 annually — about 65% of businesses statewide — from the B&O tax, though critics call that a day late and a dollar short for firms that may not survive that long.
Frequently Asked Questions
What was the Senate vote on SB 6346?
The bill passed 27-22, with only two Democrats joining all Republicans in voting against it, and now heads to the House.
How much is the millionaire tax rate?
It’s 9.9% on income above $1 million; the first $1 million of income is deducted before the rate is applied.
When would payments begin?
If it becomes law, the tax wouldn’t take effect until 2029, when the first payments would be due.
Do you buy the argument that a millionaire tax eventually reaches the middle class — or is that just scare talk? Tell us where you land.
Related Coverage
- Washington Millionaire Tax: Why SB 6346’s 9.9% Rate Will Destroy the State Economy
- Seattle Tech Layoffs Accelerate as Washington Millionaire Tax Push Drives Business Exodus
- Chicago’s $21 Per Employee Tax: How Brandon Johnson’s Business Exodus Policy Will Destroy the City
- Washington State Losing Taxpayers Every 30 Minutes After $9.4 Billion Tax Hike Disaster
Full Episode Transcript
Read the full transcript of this episode
Anti-tax activist Tim Eyman was removed for disrupting the proceedings. On to number two. A peaceful protest. I dissent to what the Democrats are doing. Please I’m peacefully >> Will you please leave the Security, will you please escort Mr. Eyman out? >> Proposed income tax on millionaires has taken a major step forward. >> Yesterday, state senators passed the bill, sending it to the house, the last step before making it to the governor’s desk. >> Anyone in the state who makes more than a million dollars annually will be subject to a 9.9% income tax. Nothing in this bill is for tax relief now.
We’re talking 3 years down the road. How do we get from here to there and survive? We know that those who oppose the legislation worry that the Democratic majority will not put language in there explicitly saying that this tax will never apply to anyone who makes less than a million dollars, but Supporters of the legislation say this tax is going to make Washingtonians lives better as it is expected to bring in a billion dollars annually. This is a monumental opportunity to begin to truly shift our upside-down tax code more right-side up. And for too long, Washington has over-relied on working class people while giving the wealthiest a special deal.
>> He is putting his very vocal support behind a new millionaires tax just 2 years after the legislature prohibited any sort of state or local income taxes. If you haven’t been following Washington state politics, mainly Washington state absolutely taxing the heck out of its constituents. Yeah, that’s what we’re doing here. It’s wild. It’s wild. Not only we don’t do we already have a tax Amazon, that worked out well cuz Amazon sent a whole bunch of employees out of Seattle into Bellevue. Well, now state Democrats are trying to run millionaires out of the state with a millionaire tax, and then Washington state Democrats are trying to run others out with a state payroll tax.
I mean, it’s just it’s phenomenal. And why is this? Because Democrats have been in leadership position in in Washington state for 40 years. 40 years. And so, years and years, decades and decades of tax and spend, tax and spend has caught up with them because now you’ve got a situation where you got all these ridiculous programs that you don’t need, and you’ve created all these tax incentives, and now you’re not going to have that tax incentive, so people are going to get taxed. And people are up and moving. People are up and moving. Jeff Bezos just up and left. He up and left. He left, you know, just a few miles from where I’m sitting, Hunts Point, said, “Screw it.
I’m going to Florida. I don’t need Washington state. I don’t need Washington state residency.” What did um what did our fine friend from Facebook, Meta, what did he do? Yeah, he left California, went to Florida. Just screw it. I’m not dealing with a billionaire tax. And that’s that’s what Mark Zuckerberg was dealing with. This is exactly what Washington state is doing. It’s exactly what New York, Mom Johnny, is doing. It’s this Democrat socialist playbook where you have to have the wealthy pay their fair share without understanding or caring about the fact that your millionaires are the ones that bring all the money to the table.
It’s not the teachers. It’s It’s not the It’s not the guys out there building roadways. Sorry, guys. But you guys know it’s true. It It It’s not It’s not It’s not the everyday Joe that brings all of the tax money into an economy like Washington state. You got a lot of tech bros here. Tech bros run the economy. And by that, I mean software engineers and everybody else, like the big swath that just got fired by Amazon because they’re replacing them with AI. That’s a whole ‘nother story. But, you’ve got all of these dialogues going on, all of these narratives, and for Washington state, none of them are good.
Because the wealthy, they have money. They’re not forced to stay here. They’re not forced to keep their businesses here. They are very mobile, and you know, they get to a point like I have, where I’ve decided I’m no longer living in Washington state. I’m moving to Oklahoma. I’m going to live in Oklahoma City. It has none of the geographic beauty that I am used to as a resident of Washington state. I go across 520, which is our main bridge from Bellevue to Seattle, and I’ve got I’ve got the Cascade Mountains behind me, just full rearview mirror full of them. I’ve got the Olympic Mountains just wildly out in front of me, and I’ve got one of the biggest lakes around, uh Lake Washington.
I’m literally driving over a freeway looking at all this. Won’t have that in Oklahoma. But, you know what? I’m 100% okay with that because I won’t have this nonsense, either. I won’t wake up in Oklahoma going, “Well, how how far do I have to bend over today and take another tax?” That that ain’t happening. It’s just It’s not happening. So, you know, this this whole taxation thing is absolutely being throttled forward. And and the the vast majority of leadership in these Democrat-run cities, Democrat-run counties, Democrat-run states, the vast majority are like, “We need to tax the rich. We need to for them to pay their fair share.” Yeah, but what happens when they up and leave and they take their businesses with them, which Boeing’s already done, Microsoft, Amazon?
I mean, it it’s not a it’s not a far cry to see those companies leave. I mean, you know what I mean? It’s reality. If you can go someplace else like Nevada, where you’ve got zero taxes, that’s where you’re going to go. That’s where you’re going to go. $2 gasoline, that’s where I’m headed, Oklahoma City. Take me a while to get there, but you know what? Um I no longer want to live with this kind of mental retardation where they think that you can just tax the f out of people and people are going to take it. They’re not. I’m not. I’m done. Washington state Senate on Monday approved a bill that would create a 9.9% tax on income above a million, sending the proposal to the house for further consideration.
We’ve already voted. Washington state’s already voted like 10 or 11 times. This is illegal for our constitution. But hey, let’s throw it out there anyway and we’ll just see what happens, right? Cuz what what they’re doing is they’re setting up and and like this question here, I love these Como um I love these Como questionnaires. Do you believe the millionaire’s tax will eventually apply to people who make less than a million? And I I voted, I’m sure it will because it will. That’s the goal, right? 92% said yeah. 4% said possibly someday, that’s optimistic. Never, 3%. What is wrong with you people who put never?
Oh, they’re never going to do that. But how big was the tax hike we just had? 9 billion, 12 billion? It’s just astronomical. Washington state had a massive massive tax hike. Now we’re looking at a statewide income tax and then we’re looking at a statewide millionaire tax. I I we’re not to the billionaire tax yet tax yet, but Washington state doesn’t have enough billionaires to I think float that and have it make sense. Senate bill 6346 sponsored by Senate Majority Leader Jamie Pedersen passed 27-22. Only two Dems joined all Republicans in voting against the bill. I mean, this is going to get tied up in court.
And but it’s going to go through. At at some point in time, this will go through. And that’s why I don’t want to stick around. The writing’s on the wall. The writing’s on the wall. We’ve been seeing it for years. You’ve been seeing it for years. And then when you when you podcast this stuff kind of every day, you’re paying attention. You’re paying a lot more attention. I’m having more and more conversations with my son Kerenen who’s over in Seattle. And um he is actually moving. He’s moving he’s got his home sold in Seattle. He doesn’t listen to my podcast very often cuz you know, who wants to listen to their dad podcast?
I mean, that’s just if my dad had a podcast, would I listen to him? I don’t know. You know what I mean? I might catch every every Dad, that was a good one so I could talk to him about it. But um my son’s out of out of Seattle um in August, I believe. And he’s moving back to Bellevue. And the phone calls that we’re having are there’s no place safe in Washington anymore. It’s fair game. And it’s not going to be immediate, but it’s the it’s the frog in the pot of boiling water. It’s on simmer. It’s it’s getting to simmer. And I I just I I don’t want to I don’t want to go into my local minimart. I I refuse to give up my minimart.
You know, whatever that might be. I have, you know, four or five of them I go to cuz yeah, who doesn’t want to go into a minimart? It’s just like a quick pick-me-up. I can buy a bunch of stuff that’s really unhealthy for me and I love it. And so you go into minimart, but what what do you see news-wise? The Seattle Times. That is probably the most biased newspaper in the United States. It might as well be we hate Trump times, right? It’s It’s collectively so bad. It is so terrible. So terrible. I no longer want to get up and go to a minimart and see that kind of crap in my daily life. I just don’t.
I I don’t want to see that. So, I’m moving. F Washington. Supporters say the so-called millionaire tax would provide a sustainable increase in funding for public schools. Aha, our schools suck. And you know, shoveling more money to them, that ain’t going to work cuz you’re you’re mentally incapacitated. You got mentally incapacitated teachers. That’s your problem. You got a bunch of dem- Democrats running around. Healthcare, okay, great. Another essential services. Isn’t that what the 9 billion or 12 billion dollars, however you look at it, isn’t that what that was for? Those tax increases? Oh, no, we need more funding from the rich.
All right, okay. Well, we’ll see how that works when they all leave. >> [snorts] >> While helping address what they describe as Washington’s regressive tax structure. You know what’s regressive? Is the tax on gasoline. Got the third highest gas in the United States, behind Hawaii and California. Hawaii. If you I don’t know if you’ve been there. You got to fly a long time to get there from Seattle. It’s 5 and 1/2 hours. Long flight. Yeah, when you ship oil in, same drill. Got to ship it in. Right now, California is shipping oil in from that’s that’s comes from Texas. It gets shipped to the Bahamas.
And and then the Bahamas from the Bahamas, it goes through the Panama Canal and then up to California. It’s just mental. And Washington state has this absolute ridiculous cap and trade for carbon emissions that just makes our refineries super expensive. It’s all planned. This is all planned. And Democrats are okay with that. But, getting back to regressive, poor people got to pay for gasoline, too. They got to fire up their vehicles, right, and drive them. Cuz we ain’t going to electric cars anytime soon as as a species. Not happening. Not happening at all. So, when you go to the pump and you got to fill up, and it’s damn near five bucks a gallon, who who does that impact the most?
Poor people. So, why are you doing it? Well, because you tax the F out of everybody, and now you’re trying to tax the F out of millionaires, they’re just going to say, “Nope, I’m gone.” I am having this conversation consistently with people. When are you leaving Washington? It’s fair game. Cuz who wants to stay here? It’s it’s not a matter of when, it it’s it’s it’s not a matter of if, it’s it’s when this is happening. And if you want to stick around and, you know, create your financial empire, and then fund a bunch of crappy social programs that don’t need to be funded, like homelessness, the reason we have such homelessness here in Washington state is cuz we spend so much money on it.
You cut off that funding, they’ll all go to Oregon. They’ll all go to California. Right? That’s what you need to be doing. “Today was a momentous step forward,” Peterson said in a statement, “for Washington’s 1.1 million school kids, people struggling to afford health care, and small businesses looking for help.” Oh, oh, that’s me. I Am I going to get some help? Am I going to get some No. Hell, no. “That help is on the way.” That’s a bunch of nonsense. You’re just looking to go after people that make a million bucks, anything over a million. Why is it that a million is the threshold now? A million is the threshold, right?
Doesn’t matter where in the world you are. If it’s over a million, oh, it’s fair game. Got to tax it. That’s because communists, socialists have decided a million is that threshold. Under the proposal, households earning more than a million annually pay 9.9% tax. Oh, yeah. I think this is for the collective good. The the collective warmth of the people. Oh, put your hands around them and give them a big hug. >> [snorts] >> Cuz I want to If I’m making a million five, I want to pay 10% on five hundred thousand. Oh, yeah. Oh, yeah. Sign me up. These articles where millionaires are saying, “I’m a tech billionaire and I approve of the billionaire tax.” That’s because you’re a You’re You’re mentally challenged.
What’s wrong with you? What is wrong with you? Well, you got 45 billion dollars. Oh, that’s a billion. Don’t care. I’m going to virtue signal that I’m a caring billionaire as you fly in and out of LA on your jet. >> [snorts] >> The first million of someone’s annual income will be deducted and anything earned after that would be subject to the 9.9% tax. Perfect. Lawmakers said fewer than 1% of the state’s wealthiest households would be affected. So, don’t don’t worry about it. It’s only wealthy people. Who own all the businesses? Who have all the investments? Who have the largest share of assets that will be moving said assets out.
That’s what they’re going to do cuz that’s how these people became wealthy. They didn’t become wealthy by sitting around in a Democrat-led state taking potshots at them with the 10% you know, millionaire tax. Beginning in 2029, small businesses grossing less than 300,000 annually, about 65% of businesses statewide, would be exempt from the B&O B&O tax. That’s a day late, dollar short, people, cuz most small businesses are going to be gone by then cuz you can’t make a go of it here in Washington state. Can’t make a go of it. Just can’t. So, that that doesn’t really matter. Oh. Oh, good.
They’re taxing the millionaires and my business is going to be exempt from B&O? What about all the other What about rent? What about gasoline? What about everything else that is most expensive in Washington state? Real estate here, wildly expensive. Wildly expensive. But what I can sell my home for here in Bellevue and then go down to Oklahoma City? Why wouldn’t I do that? You know? Why wouldn’t I do that? It just it’s mind-boggling, right? That threshold is increased from 250 through an amendment. Okay, we don’t really care about that cuz that’s just a bunch of crap that’s not really going anywhere.
An amendment would dedicate 7% of revenue collected from the tax to counties to support public defense services and strengthen public safety. I’ll see it when when when we see it, I’ll believe it cuz that ain’t happening. None of this is really happening. Other amendment, uh yada yada, repeal recent expansions of sales tax to certain services, a bunch of gibberish, political gibberish. Yeah, that’s what we’re doing. So, Washington state is leading the way in progressive revenue structure. Statewide payroll tax, millionaire tax, taxes up the you know what for everything else, billions and billions and billions of new taxes.
We are leading the way in a huge exodus of wealth. And I’ll podcast that before you right here on News for Reasonable People. It’s going to be epic. It is going to be epic. Make sure you subscribe to hit that notification bell. I’ll see you in the next episode. And I’m going to I’m going to podcast just like this from Oklahoma City. It’s going to be great. It’s going to be epic. We’re just going to crap crap on these decisions cuz you’re going to watch them unfold in real time for the disaster that they are. Oh, it’s going to be fun. See you on the next one. Bye for now. >> [music] [music]
