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Millionaire tax plans spread as Washington state eyes new levy | Fortune

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Millionaire tax plans spread as Washington state eyes new levy | Fortune


When Washington Governor Bob Ferguson proposed the state’s first income tax in modern history, he said the word “affordability” five times. 

Ferguson on Tuesday asked the legislature to craft a 9.9% tax on personal income over $1 million, which would revolutionize a state revenue system heavily reliant on sales and property tax. Although his fellow Democrats have for decades failed to push through an income tax, Ferguson said it’s “a different time right now.”

“We are facing an affordability crisis,” Ferguson said. “It is time to change our state’s outdated, upside-down tax system. To serve the needs of Washingtonians today, to make our taxes the more fair, millionaires should contribute toward our shared prosperity.”

Democrats across the US are increasingly exploring taxes as a way to capture the populist moment and address the country’s widening wealth gap. If “affordability” was the issue highlighted by Democrats who outperformed expectations in the off-year elections of 2025, the slogan next year could very well be “tax the rich.”

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It’s an opening Democrats see as the Trump administration this year paired tax cuts for high earners with reductions in Medicaid and supplemental food assistance. Raising taxes on the wealthy could also help solve a fiscal problem for states dedicating more resources to plug the holes from federal cuts.

“We have a federal government that has gone into super-villain mode, seeming to deliberately take from the poor and middle class to give to the rich,” said Darien Shanske, a tax professor at UC Davis School of Law. “This unnecessary emergency is laying down a gauntlet for states: Will they let this suffering come to pass and, if not, how will they pay for the triage? Taxes on the best-off are not just fair but also efficient.”

Read more: Millionaire Tax That Mamdani Loves Fuels a $5.7 Billion Haul

Progressive tax advocates often point to Massachusetts’ 4% surtax on incomes over $1 million, which brought in roughly $5.7 billion in fiscal 2025, far exceeding revenue projections in its third year of collection. 

New York Mayor-elect Zohran Mamdani campaigned on raising the city’s income tax on millionaires by 2 percentage points to 5.9%, which critics said would lead to an exodus of wealthy people.

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Colorado voters this year approved a measure to limit deductions for taxpayers earning at least $300,000. The revenue will fund a program providing free meals for all public school students. Colorado officials also advanced a ballot measure to change the state’s 4.41% flat rate to a graduated income tax, potentially raising more than $4 billion. That will likely go before voters in 2026. 

Michigan residents could also face a ballot initiative next year to change the state’s flat 4.25% tax rate to add a 5% surcharge on individuals earning more than $500,000 and couples making more than $1 million.

Romney’s Call

Even 2012 Republican Presidential candidate Mitt Romney has joined the call. Last week, the former US senator from Utah penned an essay in the New York Times calling for rich people to pay more, mostly in the form of closing loopholes the wealthy use to minimize tax obligations.

“It would help us avoid the cliff ahead,” Romney said, pointing to government funding shortfalls, “and might tend to quiet some of the anger that will surely grow as unemployed college graduates see tax-advantaged multibillionaires sailing 300-foot yachts.”

Most of the populist proposals coming from the states would raise taxes on income. But the tricky thing about some wealth is that it doesn’t come from a paycheck and thus is harder to tax. Even a levy on capital gains depends on a taxpayer selling assets to realize that increased value. 

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For example, former Microsoft Chief Executive Officer Steve Ballmer’s net worth increased by $706.5 billion on Monday, according to the Bloomberg Billionaires Index. Even though his mansion sits across the lake from downtown Seattle, those gains wouldn’t be subject to an income tax. 

That’s why some Washington state Democrats are still pushing for the US’s first wealth tax on unrealized gains. Under a proposal passed by the state Senate last year, portfolios of some publicly traded asset classes worth at least $50 million would be taxed at 0.5%. 

Ferguson panned the wealth tax proposal last year, saying it would be irresponsible to balance the budget on a measure that would certainly face legal challenges. 

One of the most common warnings from tax opponents is that once legislators have a new tax mechanism, they’ll either increase the rate or lower the threshold at which it would apply. Ferguson in his income-tax proposal nodded to that concern, saying the $1 million level should increase with inflation and be included in the statute or perhaps even a constitutional amendment.

Read More: Vegas Lures Millionaires Fleeing Wealth Tax in Washington State

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State taxes are also easier to avoid than federal taxes, because it’s relatively easy to move a primary residency. Washington used to attract taxpayers fed up with California’s high rates, but that has changed since the Evergreen State started taxing capital gains. Next year could be the year of the millionaire’s tax — in Washington state and across the US. 



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18-year-old dies after shooting in Tenleytown

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18-year-old dies after shooting in Tenleytown


An 18-year-old who was shot and wounded in Northwest D.C.’s Tenleytown neighborhood on Thursday afternoon has died, authorities say.

Brady Flowers Jr., of Southwest, was the victim, police said in an update Saturday.

Flowers was found shot in the 4500 block of Wisconsin Avenue NW, behind the CVS store. Jackson-Reed High School and American University are nearby.

Flowers was rushed to a hospital with life-threatening injuries and pronounced dead a day later, police said.

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Police said 10-15 teens were seen running after the gunshots.

An investigation is underway. Anyone with potentially relevant information is asked to contact police.



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Governor Moore Continues “Delivering for Maryland” Tour in Washington County, Highlighting Transportation Infrastructure, Economic Development, and Early Childhood Education

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Governor Moore Continues “Delivering for Maryland” Tour in Washington County, Highlighting Transportation Infrastructure, Economic Development, and Early Childhood Education


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ANNAPOLIS, MD — Governor Wes Moore today continued his statewide “Delivering for Maryland” tour with a series of engagements in Washington County, highlighting vital investments in local transportation infrastructure, manufacturing job growth, and early childhood education. The governor emphasized state contributions to modernize the Hagerstown Regional Airport, toured the state-of-the-art Hitachi Rail facility, and celebrated the opening of a new child care center in the South End of Hagerstown funded by the administration’s historic ENOUGH Initiative.

“From investing $1.5 million to update Hagerstown Regional Airport’s aging control tower to supporting 1,300 jobs at Hitachi Rail, the Moore-Miller administration is delivering for Hagerstown, Washington County, and Western Maryland,” said Gov. Moore. “Through our administration’s ENOUGH Initiative partnerships and investments, we’ve tripled child care capacity in the South End of Hagerstown — because no parents should be forced to pick between staying in the workforce or securing quality care for their kids.”

The governor began the day at the Hagerstown Regional Airport, touring the Air Traffic Control Tower and airport grounds. During the visit, Governor Moore highlighted the State’s $1.5 million Fiscal Year 2027 investment to complete the design for a critical replacement of the airport’s aging air traffic control facility. As a primary airport in the Maryland Aviation System Plan, the Hagerstown Regional Airport is a vital economic engine for Washington County, supporting more than 1,800 jobs and generating over $140 million in local business revenue.

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Following the airport tour, Governor Moore visited the Hitachi Rail STS facility alongside Congresswoman April McClain Delaney, Senator Mike McKay, Senator Paul Corderman and state transportation leaders. The governor toured the factory floor and rode a test train to observe the manufacturing process. Opened in September 2025 with the support of a $1.6 million state conditional loan, the 307,000-square-foot, carbon-neutral facility is a $100 million capital investment by Hitachi. The factory supports 1,300 jobs — including 460 newly created jobs — and is actively manufacturing railcars for both the Maryland Transit Administration and the Washington Metropolitan Area Transit Authority.

“Hitachi Rail has built a cutting-edge model for advanced manufacturing here in Western Maryland which is focused on delivering clean, safe, efficient regional transportation across our state and the rest of the country,” said Congresswoman April McClain Delaney. “This facility is powered by Maryland’s second-to-none workforce and world-class innovation environment. I’m proud to work with Governor Moore and our public, private, and philanthropic partners to drive global investment that supports jobs and economic growth along our I-270 Tech Corridor.”

Governor Moore concluded the day at the Children’s Learning and Empowerment Center in the South End of Hagerstown, where he met with parents, children, and community leaders. During the visit, the Governor highlighted the administration’s ENOUGH Initiative, which provided critical support for the center’s opening. The new facility is a major win for the community, tripling local childcare capacity with 24 new slots and generating six new early childhood education jobs.

Governor Moore Speaking With Children

The Children’s Learning and Empowerment Center’s opening was accelerated by a $100,000 investment from San Mar Family & Community Services, the ENOUGH grantee in Hagerstown. ENOUGH grant funding was also supplemented by a $100,000 philanthropic contribution from the Bainum Family Foundation — a member of the ENOUGH Alliance — to complete necessary facility upgrades. The center’s completion underscores the strength of the ENOUGH Initiative’s public-private partnerships to deliver on community priorities and work towards ending child poverty.

Governor Moore’s visit to Washington County follows the third stop of his “Delivering for Maryland” tour in Montgomery County, where he marked a historic milestone by installing the final segment of rail for the Purple Line. This installation completes the 16.2-mile light rail corridor connecting Bethesda and New Carrollton, with passenger service expected to begin in late 2027. The governor also visited Max’s Best Ice Cream in Bethesda, a local business dedicated to creating meaningful employment opportunities for individuals with intellectual and developmental disabilities through the Best Buddies Jobs program.

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Washington shooting suspect seeks to bar DoJ officials from prosecution role

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Washington shooting suspect seeks to bar DoJ officials from prosecution role


A man charged with attacking the White House Correspondents’ Association dinner is seeking to disqualify top justice department officials from direct involvement in prosecuting him because they could be considered victims or witnesses in the case, creating a potential conflict of interest.

The acting attorney general, Todd Blanche, and US attorney Jeanine Pirro were attending the 25 April event at the Washington Hilton hotel when Cole Tomas Allen allegedly ran through a security checkpoint and fired a shotgun at a Secret Service officer.

In a court filing late on Thursday, Allen’s attorneys argued that it created at least the appearance of a conflict of interest for Blanche and Pirro to be making any prosecutorial decisions in the case.

“As this case proceeds closer to trial, the country and the world will continue to wonder – how can the American justice system permit a victim to prosecute a criminal defendant in a case involving them?” defense attorneys Eugene Ohm and Tezira Abe wrote.

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Ohm and Abe, who are assistant federal public defenders, suggested that the appointment of a special prosecutor might be warranted. They urged US district judge Trevor McFadden, a Trump nominee assigned to Allen’s case, to disqualify Pirro, Blanche and possibly other justice department officials from direct involvement in the investigation and prosecution.

“Both heard gunshots, which presumably forced them to duck below the tables with the rest of the occupants. They were quickly evacuated. Shortly thereafter, they learned that law enforcement believed the target was certain administration officials,” Ohm and Abe wrote.

Pirro said her office would respond to the defense lawyers’ arguments in its own court filing.

“We will not tolerate people who come to the District of Columbia to engage in antidemocratic acts of political violence; and we will prosecute all such acts to the fullest extent of the law,” Pirro said in a statement.

Allen is scheduled to be arraigned on Monday on further charges in an indictment handed up Tuesday by a grand jury in Washington.

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The charges include attempting to assassinate Donald Trump, who is a longtime friend of Pirro. Blanche served as a personal attorney for Trump before joining the justice department last year. Blanche, through a spokesperson, referred a request for comment to Pirro’s office. Allen, 31, of Torrance, California, is also charged with assaulting a federal officer with a deadly weapon and two additional firearms counts.



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