It took over 24 hours of grinding floor debate, but Democrats in the Washington House approved an income tax Tuesday on households earning over $1 million a year.
Democrats have the votes to push through their proposed 9.9% income tax on household earnings over $1 million a year. For Republicans at this point, the main way to oppose the policy, which they despise, is to saddle the bill with many amendments.
As it stands, data center operators in most Washington counties do not pay the 6.5% sales tax on server equipment. That equipment is typically replaced every three to five years, and current law exempts sales tax on purchasing new or replacing old server equipment. It also doesn’t apply sales tax to labor hired to install the equipment.
Democrats in the Washington state House released a revised income tax proposal Friday that drives more money into early learning programs, increases assistance for lower-income families, and eliminates sales tax on a greater number of consumer products.
Democratic members are withholding support for the proposed income tax on millionaires, saying they want to see if a new version of the controversial legislation, expected on March 5, will satisfy their concerns.
Washington Gov. Bob Ferguson warned March 3 that the income tax Democratic state lawmakers are pressing to approve in the next nine days might have to wait until next year.
Washington state Democrats are likely abandoning plans for a new tax on employers like Walmart and Amazon, whose workers get health coverage through Medicaid.
Democrats in the Washington Legislature on Feb. 22 proposed tapping the state’s rainy day savings account and slashing hundreds of millions of dollars for a child care program for low-income families to balance the state’s budget into next year.