Core Viewpoint - Washington state GOP Chairman Jim Walsh is opposing Governor Bob Ferguson's proposed "millionaire tax," which is a 9.9% income tax on residents earning over $1 million annually, arguing it could have broader implications beyond just wealthy individuals [1][5]. Tax Proposal Details - The proposed millionaire tax aims to address perceived inequities in the state's tax system, where the bottom 20% of earners pay 13.8% of their income in taxes, while the top 1% pay only 4.1% [2]. - Ferguson's proposal is intended to "rebalance" the tax system and provide tax relief for working families and small business owners affected by the affordability crisis [4]. Economic Impact Concerns - Walsh warns that the tax could be deemed unconstitutional by the state's Supreme Court and may lead to broader income tax implications for all residents [5]. - The Tax Foundation analysis indicates that the proposed tax could result in a top rate exceeding 18% on wage income and restricted stock units (RSUs) in Seattle, making it the highest in the U.S. [8]. - The tax is expected to disproportionately impact small business owners and tech workers who receive RSUs as part of their compensation, with Washington state having approximately 695,695 small businesses and nearly 360,000 tech employees [9]. Potential Consequences - Jared Walczak from the Tax Foundation warns that such an aggressive tax could harm Washington's economy, potentially driving jobs and economic opportunities to other states, particularly affecting the tech sector already burdened by high business taxes [10]. - Ferguson argues that the revenue generated from the tax would be allocated to enhance K-12 education funding and eliminate sales taxes on essential personal and baby products [13].