Washington Governor Bob Ferguson signed a law imposing an additional tax on high-income residents that has already been dubbed a “millionaires’ tax.” The law, which takes effect in 2029, calls for a 9.9% levy on annual income exceeding $1 million. Well-known travel writer and Washington native Rick Steves, creator of popular guidebooks and TV programs, publicly endorsed the measure in a Facebook post, saying it promotes “shared prosperity.”
Steves explained his support by noting that Washington’s tax system has historically relied largely on consumption taxes, such as the sales tax, making it one of the most regressive in the nation. Because the state has no income tax and primary revenues come from sales taxes and excise taxes, low-income residents spend a larger share of their earnings on necessities and pay a higher percentage of their income in taxes compared with the wealthy. Previous reform attempts, including proposals to impose an income tax on high earners or a capital gains tax, were often rejected by voters in referendums or blocked politically. The new tax, which will affect roughly 20,000 households, is expected to raise nearly $4 billion annually for the state. Those funds are planned to be directed to social programs that would help about a third of Washington families who live paycheck to paycheck.
A wealthy person himself, Steves says he doesn’t believe the tax will harm the wellbeing of those who pay it. “I view this tax as essentially free money for everyone in Washington. Everyone in my state wins,” he wrote. He added that people at that income level have already crossed the threshold where extra spending increases their security or happiness, so the “human cost” of the tax will be essentially zero.
However, not all affluent residents of the state share Steves’s view. Former Starbucks CEO Howard Schultz, for example, announced a move to Miami, saying he hopes Washington remains business-friendly. A group of tech-sector leaders, including representatives of major Seattle companies such as Amazon and Microsoft, also issued an open letter. They warn that such tax measures could undermine growth in the state’s key IT sector and slow innovation in artificial intelligence. Their typical stance is to support low taxes and business incentives, though they sometimes accept targeted taxes to fund specific projects.
The new law is likely to face legal challenges. The conservative organization Citizen Action Defense Fund has already hired a former state attorney general to prepare a lawsuit. In addition, opponents of the tax from the conservative political group Let’s Go Washington plan to gather signatures to put the measure on the ballot this fall, and if unsuccessful, to seek placement on next year’s ballot. That group is known for using the ballot initiative process to advance its proposals, such as tax cuts and repeal of recently passed laws. Their influence lies in mobilizing voters and putting pressure on lawmakers, even in a predominantly liberal state.
Steves’s public stance is not new for him. The author of the book Travel as a Political Act has a long history of philanthropy. He has donated millions to support local communities, the arts, and social services, and he bought a hygiene center for the homeless to prevent its closure, demonstrating his commitment to social responsibility in practice.
