Bill > SB6346

This bill establishes a new tax on individuals with an annual adjusted gross income of $1,000,000 or more, with the intent to fund K-12 education, healthcare, higher education, and other essential government services, while also providing tax relief to working families and businesses. The tax is calculated based on "Washington taxable income," which is derived from federal adjusted gross income with specific modifications. Importantly, the bill includes a $1,000,000 standard deduction for individuals and married couples filing jointly, which will be adjusted annually for inflation. It also provides credits for taxes paid to other jurisdictions, business and occupation taxes, capital gains taxes, and pass-through entity tax payments. The bill aims to rebalance the state's tax system, which is noted as being regressive, by reducing certain sales and business taxes and expanding the working families' tax credit. The revenue generated from this tax will be deposited into the state's general fund, with a portion also allocated to the "fair start for kids account" for childcare and early learning purposes. The bill also makes several amendments to existing laws, including those related to public pensions and tax administration, and includes provisions for estimated tax payments and pass-through entity tax elections.