Washington's New Millionaires Tax Faces Legal Challenge Over Constitutionality
Washington state's newly enacted 'millionaires tax' is facing its first legal challenge, with a lawsuit filed by the Citizen Action Defense Fund. The tax, which imposes a 9.9% levy on income exceeding $1 million, is argued to be unconstitutional by the challengers, led by former state officials Rob McKenna and Phil Talmadge. They claim the tax violates the state constitution's requirement for uniform property taxes. The tax, passed without Republican support, is projected to generate over $3 billion annually for funding schools, healthcare, and tax relief. However, opponents fear it could pave the way for broader income taxes.