Washington
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 “It is time to change our state’s outdated, upside-down tax system.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.”
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.
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.
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
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.
Incidents like the one in 2023 along the Baltimore Beltway — a crash that killed six highway workers — are the reason why officials gathered to stress the need for better work zone safety during National Work Zone Awareness Week.
This week, officials, workers and residents are calling for safer roads as they say there is still more work to be done when it comes to safety.
“It’s about understanding that each of us has a role to play in the safety and protection of one another,” William Pines from the Maryland State Highway Administration said.
With an active construction site as the backdrop — at the interchange between Pennsylvania Avenue and Suitland Parkway — roadway workers spoke up.
“We are not just workers, we are people — real people. We are parents, siblings, friends and neighbors. So when you see us out there, please pay attention to that.” Dawn Hopkins with Flagger Force Traffic Control Services said.
Hopkins says she’s had to sound an alarm to get her crew out of dangerous situations.
“Please slow down, stay alert…and watch out for us in the workzones,” Hopkins added.
While the number of crashes in Maryland work zones in 2025 remains concerning, it is lower than in 2024. In 2025, there were:
- 1,148 work zone crashes
- 9 work zone deaths
- 449 injuries
In 2024, there were:
- 1,302 work zone crashes,
- 12 work zone deaths, and
- 492 injuries
“While citations are down, we still had 19 citations that were issues where the automated system recorded drivers traveling in excess of 130 miles an hour in work zones,” Pines said.
Maryland Gov. Wes Moore has proclaimed April 22 as “Go Orange Day” in Maryland, urging everyone to wear orange in support of highway worker safety.
A moment of silence for road workers who have been killed will be observed at noon this Friday.
This regularly scheduled column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].
Question: How has the local real estate market performed so far this year?
Answer: After a year where market conditions softened in favor of buyers, the Northern VA real estate market became more favorable for sellers in the first quarter of 2026, while the Washington DC condo market continued to reel.
What is in this article:
- Northern VA, Arlington, and Washington DC Absorption Trends (demand)
- Northern VA, Arlington, and Washington DC Inventory Trends (supply)
- Washington DC List Price Trends (market values)
Northern VA & Arlington Inventory is Being Absorbed Faster
After four straight quarters of double-digit decreases in year-over-year absorption, the Northern VA and Arlington markets saw a ~8% increase in absorption rate.
What this means: Demand increased in Q1
Northern VA & Arlington New Listing Volume is Declining
After a promising trend of six straight quarters of year-over-year increases in the number of homes listed for sale in Northern VA, new listing activity fell by ~1% each of the previous two quarters.
What this means: Sellers have less competition, buyers have fewer choices
Washington DC Condo Absorption is Plummeting
The absorption rate for DC condos has declined year-over-year for 16 quarters straight and 23 out of the past 26 quarters.
What this means: It is difficult to find buyers for DC condos
Washington DC Condo Inventory Declined Slightly
Total inventory declined by 3.4% year-over-year, the first quarterly drop since Q4 2023. Still, there were great than 2x more condos for sale in DC in Q1 2026 than Q1 2020
What this means: Motivated sellers must compete aggressively with each other for buyers
Washington DC Condos Keep Getting Cheaper
The average price of a DC condo listed for sale is 9.4% less than it was in Q1 2025 and ~9% less than it was ten years ago.
What this means: Even lowering the price won’t guarantee a buyer
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anybody who asks.
Below are some of our team’s pre/off-market listings, details and additional listings available by request:
- Westover – 4BR/2BA/2,000sqft – Detached Single Family (2000) – 23rd St N Arlington VA 22205
- Green Valley – 5BR/4.5BA/3,000sqft – Detached Single Family (2020) – 24th St S Arlington VA 22206
- Ballston – 4BR/3.5BA/2,400sqft – Townhouse (2008) – N George Mason Dr Arlington VA 22203
- Ballston – 4BR/3.5BA+office/4,000 sqft – Four Townhouses (2026/2027) – 11th St N Arlington VA 22201
- Rosslyn – 2BR/2BA/1,800sqft – Condo (2021) – 1781 N Pierce St Arlington VA 22209
- Rosslyn – 3BR/2.5BA/2,400sqft – Condo (1986) – 1530 Key Blvd Arlington VA 22209
- Williamsburg – 6BR/5.5BA/5,500 sqft – Detached Single Family (2026) – 27th St N Arlington VA 22207
- Yorktown – 6BR/6.5BA/6,000+ sqft – Detached Single Family (2026) – N Greencastle St Arlington VA 22207
Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.
The U.S. Department of Health and Human Services (HHS), “on behalf of the Department of Education (ED),” on Monday released a Notice Inviting Grant Applications for the Child Care Access Means Parents in School (CCAMPIS) program. Applications are due by May 29.
Last November, ED announced that it had entered into an interagency agreement with HHS to administer the CCAMPIS program. This is the first CCAMPIS competition conducted under this arrangement.
Approximately $73.5 million will go to institutions of higher education that awarded at least $250,000 in Pell grants to enrolled students in FY 2025. HHS will award about 148 grants, ranging from $150,000 to $1 million.
The terms of the grant competition are not significantly different than prior competitions. As before, there are two absolute grant priorities that every application must address – leveraging non-federal resources and utilizing a sliding-fee scale for low-income parents.
This year’s competition includes only one invitational priority that reflects the Trump administration’s general educational policy. The new priority, entitled “Expanding Education Choice in Early Learning Settings,” encourages applications that “expand access to education choice … including by empowering parents in choosing the early learning setting that best meets their family’s needs.” Flexible childcare programs that include drop-in care and care during nontraditional hours are also encouraged.
One other notable difference from prior competitions is an expanded “Terms and Conditions” section that not only requires compliance with applicable civil rights laws, but also refers to Trump administration Executive Orders and guidance on racial discrimination that clarify “the application of federal antidiscrimination laws to programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (“DEI”) programs.” This includes any “discriminatory equity ideology [as defined in Executive Order 14190] in violation of a federal antidiscrimination law.”
The exact scope of these terms is unclear because courts have not found many of the practices described in these Executive Orders and guidance documents to be violations of federal law.
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