Mike Volz and Suzanne Schmidt: Washington’s income-tax-free advantage is real. We should not give it up

By State Reps. Mike Volz and Suzanne Schmidt

For generations, Washington has made a deliberate choice: We do not tax income.

That decision has helped shape our economy, attract employers, grow family incomes and give working people more control over what they earn. It reflects the clear will of voters, who have rejected a state income tax time and again.

Now, Democratic leaders want to abandon that model.

Their latest proposal, Senate Bill 6346, would impose a 9.9% income tax on individuals and couples earning more than $1 million. They are calling it a “millionaires tax” or “high earner tax.” We have heard that promise before. It never lasts.

Once an income tax is created, it becomes easy to expand. Rates can rise and thresholds can fall. What starts as “targeted” eventually reaches everyone. History in Olympia proves this.

The capital gains tax rate was increased just four years after being created. The estate tax has climbed to the highest top rate in the nation. Document recording fees jumped from $5 to $300. The so-called levy swap lowered property taxes briefly, only for lawmakers to raise them again the next year.

Even Democratic lawmakers have acknowledged the risk. When asked why the public should trust that an income tax would not expand, one Democrat leader answered plainly: “You shouldn’t.”

That honesty matters. We should take them at their word.

Supporters claim this tax is necessary to balance the budget. It is not. Washington does not have a revenue problem. It has a spending problem.

Over the past decade, the state operating budget has more than doubled. Spending grew rapidly during good economic times, relying on temporary surpluses and one-time money. Now, instead of reforming spending practices, the majority wants to build a new tax system.

Republicans have offered responsible alternatives that focus on efficiency, accountability, and long-term stability. Those ideas deserve attention before creating another permanent tax.

Beyond fairness and transparency, there is a larger issue: competitiveness.

Washington’s lack of an income tax is not symbolic. It produces measurable results.

Between 2020 and 2025, states without an income tax consistently outperformed states that tax income. They saw stronger growth in GDP, faster population increases, more job creation and significantly higher gains in personal income.

Most striking, personal income grew roughly 67% faster in states without an income tax than in states with one.

That is not theory. That is data.

It means workers in income-tax-free states are seeing their paychecks grow faster. It means businesses are investing more and families have more opportunity.

This advantage helps explain why Washington has attracted innovators, manufacturers, entrepreneurs, and skilled workers from across the country. Weakening that edge puts our economy at risk, especially in a time when people and businesses can relocate more easily than ever.

This proposal also creates a hidden penalty on families.

Because it applies to married couples earning $1 million combined – not individually – it treats a household of four the same as a single person. It ignores the real costs of raising children, supporting aging parents and maintaining a home. In practice, it punishes families for building a life together.

There are also serious constitutional questions. For more than a century, Washington courts have treated income as property and required property taxes to be uniform. This bill attempts to sidestep that precedent by rewriting voter-approved protections. That invites litigation, uncertainty, and years of legal battles.

Washingtonians have been clear. They have rejected income taxes ten times. They value a system that rewards work and limits government growth.

We should listen.

Creating an income tax will not fix our budget challenges. It will only make it easier to avoid difficult decisions and expand government even further.

Once this system is in place, there is no easy way back.

We believe Washington is strongest when it lives within its means, respects voters, and protects its competitive advantage. Our income-tax-free model has delivered real results for workers, families, and communities.

We should build on that success – not abandon it.

State Rep. Mike Volz, of Spokane, represents the 6th Legislative District. State Rep. Suzanne Schmidt, of Spokane Valley, represesnts the 4th Legislative District. Both are Republicans.