New income tax risks losing business, targeting lower earners

Published 1:30 am Friday, March 20, 2026

A newly passed income tax on high earners represents a major shift in Washington’s tax structure and raises concerns that go well beyond projected revenue.

Supporters, including legislators representing Snohomish County, argued the tax would remain narrowly targeted and would not drive economic behavior. Yet already, some high-income residents and business owners have moved, and others have publicly stated they plan to relocate in response. Whether that trend accelerates remains to be seen, but early signals should not be ignored.

State Sen. John Lovick and Reps. April Berg and Brandy Donaghy, who represent the 44th Legislative District, voted in support of the measure. Their position reflects the current direction of policy in Olympia, where unified control of state government has enabled major structural changes to move forward.

There is also a broader issue of credibility and process. The tax does not take effect until 2029, yet lawmakers attached an emergency clause – typically reserved for urgent, immediate needs – to limit the public’s ability to challenge the policy through referendum. If the measure is not urgent for several years, it raises a reasonable question as to why that mechanism was used.

Notably, lawmakers declined to include language that would prevent future legislatures from lowering the income threshold. That omission matters. While current leaders say the tax is limited to high earners, nothing in the law guarantees it will remain that way.

Residents should follow this issue closely as it moves through the courts and, potentially, back to the ballot.

Michael LeMoine

Snohomish