Washington state enacts a millionaires tax to fund schools and families
Washington state millionaires tax marks one of the boldest state-level tax equity moves in recent U.S. history, imposing a surcharge on capital gains and investment income earned by the state’s wealthiest residents. The revenue will fund K-12 public schools, early childhood programs, and relief for small businesses long burdened by the state’s business and occupation tax structure. The law is especially significant because Washington has historically had one of the most regressive tax systems in the country, with lower-income residents paying a far higher share of their income in taxes than the wealthy. By targeting investment income, the state begins correcting that structural imbalance without adding burdens to working families.









