Letter: Is income tax meant to cover unaccounted for federal funds?

Published 1:30 am Sunday, March 8, 2026

The House Finance Committee has advanced Senate Bill 6346, a 9.9 percent tax on incomes over $1 million. This is a calculated violation of Initiative 2111, which the state Legislature passed to ban a personal income tax.

Why the sudden rush to tax citizens illegally? To cover up a massive scandal before the federal government intervenes.

The state Auditor recently confirmed Washington cannot account for $416 million in federal block grants distributed to subsidized day cares over the past four years. (A state audit is ongoing and should be complete this spring.) State officials admitted on the record they disburse millions based on unverified “video uploads” rather than physical inspections.

Because of this failure, Washington is under a strict federal “Defend the Spend” freeze. The state cannot physically comply with federal receipt requirements.

I have formally notified the U.S. Treasury and the IRS Criminal Investigation Division of these untraceable funds. Gov. Bob Ferguson and the Legislature know a massive federal clawback is possible. They are passing SB 6346 to extract money from taxpayers to pay for their own administrative incompetence.

The citizens are being illegally taxed to hide an unaccounted for $416 million of federal funds.

Myron Grant Phillips

Edmonds