It’s been an incredibly busy week in the Evergreen State. The Seattle Seahawks are currently in the first week of free agency, but while they’re starting, another organization is just wrapping up. This week also marks the final days of Washington’s 60-day legislative session. As with most sessions these days, it’s filled with a lot of controversial legislation, but this year brought something nearly unthinkable in Washington: an income tax… at least to some.
Senate Bill 6346 is a measure that would impose a 9.9% tax on everyone in Washington state who earns more than $1 million a year. Therefore, it is called the “millionaire’s tax.” So far, SB 6346 has passed both houses of the state Legislature and is now on its way to Gov. Bob Ferguson, who has expressed his intention to sign the bill. If Governor Ferguson does so, the law would go into effect in 2028 and payments would begin in 2029.
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As expected, the bill generated considerable controversy. Washington is currently one of the few states in the union that doesn’t impose any form of income tax, and now that’s almost certain to change. Those opposed to SB 6346 expressed concern about a “wealth flight” from the state’s wealthiest individuals and companies, such as former Starbucks CEO Howard Schultz, fleeing the Pacific Northwest. Others will raise legitimate concerns that the Legislature is effectively ignoring the will of the people, as Washingtonians have rejected income tax measures 11 times in the state’s history.
Of course, there’s another concern: How will this tax affect the state’s beloved professional sports teams? Seahawks general manager John Schneider said this is actually a factor in their aggressive free agent recruitment. Featured on Seattle Sports Wyman and Bob In the show, Snyder does make this point succinctly.
This will undoubtedly scare away some players, no matter how good the Seahawks are managed/coached. It could also result in Seattle being forced to “overpay” to help offset the money players lose due to the “millionaire’s tax.” However, it’s also important to remember that most states in the union do have an income tax, and Washington is still a great place to live. Sadly, desirable places to live in this country often become much more expensive as a result, and the Evergreen State is no exception.
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As I mentioned in the previous paragraph, if this bill becomes law (and all signs point to it being), it won’t really start affecting the highest earners until 2029 at the earliest. The Olympians are up to three full years away from asking the highest-paid Seahawks players for more bonuses. Additionally, SB 6346 will undoubtedly face numerous legal challenges, as the Washington Supreme Court ruled in 1933 that the income tax was unconstitutional in the Evergreen State. At the time, the Supreme Court ruled that income was a form of property and property must be taxed at a flat rate.
Of course…the Supreme Court could overturn the original ruling just as easily as it could uphold it.
Whatever happens, this will be a story we at Seahawks Wire will continue to follow closely.
This article originally appeared on Seahawks Wire: Seahawks GM Schneider talks Washington’s new ‘millionaire tax’
