Washington passes tax on high-income earners — critics warn it could backfire anytime
Levying high taxes on the country’s wealthy is slowly being adopted by several states, and it's safe to say millionaires aren’t happy about it. The most recent state to announce such taxes is Washington. The state is home to thousands of people who make more than a million dollars per year, and they will have to give away a significant portion of that income each year once the new tax legislation comes into effect. The problem is that a lot of these millionaires might leave the state before the law takes effect.
As per a report in The Hill, Washington state lawmakers approved a 9.9% annual tax on personal earnings over $1 million. The report states that this could generate a whopping $4 billion annually, which would go towards childcare and help eliminate sales taxes on hygiene products. As per Democratic Gov. Bob Ferguson, this new tax regime will make the state more affordable for residents.
State House Majority Leader Joe Fitzgibbon (D) believes that the new tax legislation does away with the outdated one, which put a huge tax burden on low-income individuals. “It has been a long journey here to this moment, not just the over 24 hours that we’ve spent on this floor debating this proposal, but the 93 years that Washingtonians have struggled with a grossly outdated tax structure that falls by far the heaviest on the lowest income,” he explained.
On paper, this sounds like a great plan, but the millionaires who would have to pay this tax would rather move somewhere else. This could, in turn, have an adverse effect on the economy. As expected, Republicans stood against the idea of taxing the rich and urged that the details of the bill be made public. “The people of Washington have a right to know what’s in this bill. The people of Washington have a right to know what’s not in this bill, and they have a right to decide,” said Rep. Peter Abbarno (R).
Another person who is a big supporter of taxing the rich is New York Mayor Zohran Mamdani. He ran his campaign on the promise of doing just that, and some people are not happy about it. To increase income taxes on the rich, Mamdani needs to get the approval of Gov. Kathy Hochul. However, in case that does not happen, he has proposed a whopping 9.5% property tax.
Mamdani has explained that this tax hike would affect New Yorkers with a median income of $122,000. This tax change will affect more than 3 million residential units and over 100,000 commercial buildings. As per Kevin O’Leary, the idea is simply not feasible. “What he’s proposing is beyond insane,” he said. “This is bat poopoo crazy.”
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