9.9% Income Tax Sparks Florida Migration

US Capitol dome with American flag flying

Washington State Democrats just passed a 9.9% income tax on millionaires that threatens to drive job creators and high earners straight into the welcoming arms of tax-free Florida, proving once again that leftist spending binges come with a hefty price tag for success.

Story Snapshot

Washington Legislature passed a 9.9% tax on income exceeding $1 million, targeting approximately 20,000 households to generate over $3 billion annually
The tax takes effect January 1, 2028, marking the state’s first broad income tax since a 1933 Supreme Court ruling invalidated such measures
Business leaders are eyeing Florida and other no-income-tax states as Democrats ignore warnings about economic consequences
Republicans predict the tax will inevitably expand beyond millionaires, while legal challenges and ballot initiatives loom

Democrats Ram Through Income Tax Despite Opposition

Washington’s Democrat-controlled Legislature passed Senate Bill 6346 on March 11, 2026, after a grueling 25-hour House debate that ended with a narrow 51-46 vote. The Senate followed suit hours later with just one day remaining in the legislative session. Governor Bob Ferguson, a Democrat, awaits the bill at his desk and is expected to sign it after initially threatening a veto. The legislation imposes a 9.9% tax on income above $1 million, making Washington one of the few states to implement an income tax after nearly a century without one.

WA Dems Pass 'Millionaire' Tax and Business Icon Says Hmmm, Florida Sure Looks Good Right Nowhttps://t.co/KmTIIyx3Hr

— PJ Media (@PJMedia_com) March 12, 2026

Targeting Success to Fund Government Expansion

Democrats justify this tax grab by claiming it addresses a multi-billion-dollar budget deficit caused by federal cuts, inflation, and legal costs. The revenue—estimated at over $3 billion annually starting in 2029—will flow into the general fund for K-12 education, health care, and higher education. Amendments added free school meals, expanded Working Families Tax Credits, small business tax credits, and exemptions for hygiene products. Representative April Berg, the House sponsor, proclaimed a “desperate need for structural tax reform” after decades of reliance on sales, property, and Business & Occupation taxes. Yet this reasoning ignores the state’s history of fiscal mismanagement and overspending that created these deficits in the first place.

High Earners Eye the Exit as Florida Beckons

The real-world consequences of punishing success are already emerging. Business leaders and high earners are openly considering relocation to states like Florida, which has no income tax and actively courts businesses fleeing high-tax jurisdictions. Washington’s tech and finance sectors, home to many millionaires, face the prospect of losing their most productive citizens to states that reward rather than penalize achievement. This predictable outcome demonstrates the fundamental flaw in leftist economic policy: you cannot tax your way to prosperity. When government makes success expensive, successful people leave, taking their jobs, investments, and tax revenue with them.

Constitutional Questions and Inevitable Expansion

The tax faces almost certain legal challenges based on a 1933 Washington Supreme Court ruling that invalidated a voter-approved income tax as an unconstitutional property tax. Democrats express optimism that the current court will reverse this precedent, but the legal uncertainty creates additional economic instability. Republicans warn that despite Democrat promises, this tax on the wealthy represents merely the first step toward a broad-based income tax on all Washingtonians. Representative Joshua Penner stated plainly: “A tax on Washingtonians, just matters when.” History proves conservatives right on this point—progressive tax schemes always expand beyond their original targets once the principle is established.

The Broader Assault on Economic Freedom

This Washington income tax exemplifies the progressive playbook nationwide: create budget crises through irresponsible spending, then demand the productive subsidize government expansion while demonizing success as greed. The fact that only 20,000 households face this tax initially misses the point entirely. The principle of government confiscating nearly 10% of income above an arbitrary threshold attacks the fundamental American value of rewarding hard work and risk-taking. When states punish achievement while offering generous benefits to non-contributors, they create perverse incentives that destroy prosperity. Washington voters should remember which party values their economic freedom and which views their wallet as government property when reversing this disaster through ballot initiatives or court challenges.