Governor Ferguson statement on revised Millionaires’ Tax proposal
New proposal ensures significant money goes back to Washington families and small businesses
OLYMPIA – Governor Bob Ferguson offers the following statement on the striking amendment by Rep. April Berg to the proposed Millionaires’ Tax:
I’ve said from the beginning of the discussion around the Millionaires’ Tax: Any bill I sign must send a significant percentage of that revenue back to Washington families and small business owners to make life more affordable. We must significantly expand eligibility for the Working Families Tax Credit, and reduce taxes on small business owners.
I’m glad to say the latest floor amendment to the bill achieves these critical goals, and will help make our state more affordable. I will sign this version of the bill.
Significant negotiation and work has gone into getting this proposal to this point. I appreciate the collaboration and partnership with legislators and legislative leaders.
The new proposal retains the progress already made: The sales tax exemptions on common products, such as diapers and hygiene products, and significant tax breaks for businesses.
The current proposal makes the Working Families Tax Credit available to 460,000 additional households. That’s money straight back into the pockets of working families. The Working Families Tax Credit is an existing program in which qualifying families receive a check from the State for an amount between $300 and $1,300.
The revised bill removes the age restrictions on the program, and expands eligibility to every family earning at or below our state’s ‘Need Standard’ – essentially, a household’s living wage.
I’ve also been clear that I’m open to other good ideas on how to send revenue back to the people. My colleagues in the Legislature certainly delivered.
I strongly support the following new additions to the revised proposal that make life more affordable for Washingtonians:
I’m especially pleased that funding for a policy particularly close to my heart is included: Free school lunch and breakfast for all Washington students. Hungry kids can’t learn, and this funding puts money back in the pockets of Washington families.
This was a top priority for me when I was running for Governor, and the first Governor-request bill I introduced last session. I talked about it in my inaugural address: ‘Right now, if you’re a single parent working 40 hours a week making 19 bucks an hour, your child doesn’t qualify for free meals. That’s unacceptable. That needs to change.’
This version of the Millionaires’ Tax will make that happen. Senator Marcus Riccelli and Representative April Berg sponsored my Governor-request bill. They have been champions on this issue and I appreciate their partnership in our recent negotiations for this proposal.
The new proposal also exempts over-the-counter medicines from sales tax. Every Washingtonian will benefit from this relief, as well as the sales tax exemptions already in the bill.
Importantly, the new proposal invests significant funding – 5% of the Millionaires’ Tax revenue – to the Fair Start For Kids Account, which can only be used for childcare and early learning. Washington ranks fifth nationally for the highest childcare costs. Providing significant funding dedicated to support affordable childcare will provide relief to families.
I will review any further amendments very carefully to ensure the final form of the bill maintains these investments.
I strongly encourage the Legislature to pass this bill with all of these investments in affordability included. It represents a historic step forward in rebalancing our unfair system and making life more affordable for Washington families and small business owners.
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