Washington Gov. Inslee suggests ‘wealth tax’ to help close budget gap

Oregon Local News - Dec 17th, 2024

Outgoing Washington Governor Jay Inslee has proposed a new tax on personal wealth exceeding $100 million as a measure to address a projected $16 billion budget shortfall over four years. This tax would affect approximately 3,400 residents, including notable figures like Microsoft founder Bill Gates, and is expected to generate $10.3 billion. The proposal aims to prevent cuts in critical areas such as education, mental health services, and police funding. Inslee's successor, Bob Ferguson, has not dismissed the possibility of tax increases to address the budget gap. The proposed wealth tax is part of a broader trend in Democratic-led states to tax the wealthy more heavily, exemplified by Massachusetts' recent millionaire tax. Washington is known for its regressive tax system, which disproportionately burdens lower-income residents. Despite strong Republican opposition, voters have previously supported efforts to create a fairer tax system, such as upholding the state's new capital gains tax. Inslee attributes the budget shortfall to factors like inflation, increased demands on social safety programs, and lower-than-expected revenues. His budget proposal also includes increased taxes on certain businesses and $2 billion in cuts or deferred spending, including closing a correctional facility.