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Washington Initiative 645 (Millionaire Tax Repeal)
Washington State's Initiative 645, on the November ballot, would repeal a new state income tax on high earners before it takes effect in 2028. The vote is a significant test case for taxation of wealthy residents in a historically no-income-tax state.
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## Overview
Washington State voters will decide this November on Initiative 645, a ballot measure that would reverse the state legislature's decision to impose a new income tax on high earners before it takes effect (Tax Foundation, October 15).
## Key Details
- Washington's new income tax on high earners is not scheduled to take effect until 2028 (Tax Foundation, October 15).
- Initiative 645 would prevent that tax from taking effect, reversing the legislature's earlier action (Tax Foundation, October 15).
- The measure has already generated significant political and public activity ahead of the actual implementation date (Tax Foundation, October 15).
## Why It Matters
Washington has traditionally had no state income tax, making this a notable shift in state tax policy. The outcome of Initiative 645 will be a bellwether for how voters respond to new taxes on high earners, and has implications for high-net-worth individuals, tax planning, and the broader national debate over state-level wealth and income taxation. This is relevant for attorneys and entrepreneurs advising clients on multi-state tax exposure and residency planning.
## Open Questions
- The outcome of the November vote.
- Specific tax rate and income thresholds under the original legislation.
- Potential legal challenges regardless of the ballot outcome.