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flag Washington Democrats propose a 9.9% income tax on top earners, but Governor Ferguson demands more relief for residents and businesses.

flag Washington state Democrats have introduced a bill to impose a 9.9% income tax on earners over $1 million, starting January 1, 2028, generating $4 billion annually. flag Governor Bob Ferguson supports the tax’s goal but rejects the initial plan, demanding more revenue be returned to residents through expanded tax credits and broader business relief. flag The legislation includes measures like eliminating sales tax on hygiene products and boosting small business credits, but Ferguson wants higher thresholds for business exemptions and greater affordability provisions. flag The bill faces Republican opposition and potential legal challenges, but Democrats expect swift progress with strong party backing. flag If passed, Washington would remain one of nine states without a personal income tax.

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