Excise tax

Washington State has no state income tax at least up till now. Washington enacted a 9.9% tax on household income over $1 million (SB 6346) in March 2026, targeting high earners. Signed by Gov. Bob Ferguson, this tax on annual income above $1 million takes effect in 2028, with initial payments due in 2029. It affects roughly 21,000 residents and aims to fund tax credits, child care, and school meals. This is an example of what is called luxury beliefs. It is highly unlikely that this new tax will affect any of the legislators who enacted the law. Most people do not object to taxing the other guy. The Washington State constitution prohibits state income tax so this will be called an excise tax. This will be an uphill battle because: Excise taxes are indirect, consumption-based taxes levied on specific goods (gasoline, tobacco, alcohol) or activities, usually paid by businesses and passed on to consumers, making them often hidden. In contrast, income taxes are direct taxes imposed on personal or corporate earnings, generally proportional to wealth and paid directly to governments