(The Center Square) – Gov. Bob Ferguson on Tuesday delivered his State of the State address before a joint session of state lawmakers on Day 2 of the 60-day legislative session that began Monday, spotlighting the state’s resiliency by highlighting the response to recent flooding and throwing his support behind a so-called “millionaire’s tax.”
The first-term Democrat praised the efforts of Washington State Department of Transportation crews, some of whom attended the speech, for their rapid response to recent historic flooding that led to widespread damage across the state.
“From Yakima to Enumclaw, state employees and our partners worked under challenging conditions and cleared 97 roads in just four weeks,” the governor noted. “One of those roads is Highway 2, a critical artery that connects our state. Thanks to the crews who labored 24 hours a day. Highway 2 is now open with no lane restrictions and just one detour.”
He noted witnessing residents helping one another and local officials stepping in to assist their neighbors.
“It’s that heart and spirit of our people that allows me to report today that the state of our state remains strong,” Ferguson said.
A significant portion of the governor’s address focused on tax policy.
Ferguson urged Democratic lawmakers, who hold majorities in both chambers of the Legislature, to prioritize a 9.9% tax on annual adjusted gross income exceeding $1 million, estimated to generate up to $3.5 billion per year.
Revenues wouldn't reach state coffers until at least 2029 due to anticipated legal challenges and system development, potentially funding education, tax relief and infrastructure.
Although not yet a formal bill in this session, the tax has been a major topic of discussion.
“I'm calling for something truly historic, a millionaire’s tax,” the governor said. “I mean, someone who makes more than a million dollars in income in a single year. Less than one-half of 1% of Washingtonians will pay it.”
Most, but not all, Democrats in the chamber stood in applause as Republicans shook their head in dismay.
“Let's seize this opportunity, this session to make our tax system more fair,” Ferguson continued.
Republican Sen. Keith Wagoner of Sedro-Wooley gave the Republican response after Ferguson’s speech, referencing the governor’s inaugural speech in 2025, when he downplayed the need for significant tax hikes, emphasizing a preference for spending cuts and government efficiency to address a projected multi-billion dollar budget shortfall.
“He said he would not sign a budget built on new and higher taxes,” Wagoner recalled. “Less than five months later, the governor signed the majority Democrats' bloated budget and the largest tax increase in Washington's history. Whether he never intended to keep his word or simply couldn't muster the courage to stand up to his party, it doesn't really matter.”
Wagoner said the people of Washington have rejected an income tax 11 times.
“Make no mistake, their proposals this session will pave the way to a full-blown income tax on all Washington workers,” he predicted. “And right now, a Washington family of four has a state and local tax burden over $5,000 higher than the national average. You cannot make Washington more affordable by making it more expensive.”
Wagoner urged Washingtonians to engage with lawmakers, show up in Olympia to testify on bills they care about, and email the governor urging him to be fiscally responsible.
