HB 1406 addresses Washington state’s regressive and inequitable tax code by using revenues generated by the Washington state wealth tax to offer credits against taxes paid disproportionately by low-income and middle-income families and small start-up and low-margin businesses. The wealth tax would assess a one percent tax only on financial intangible assets, such as publicly traded options, futures contracts, and stocks and bonds.
Additionally, the legislature intends to invest the revenues generated by the Washington state wealth tax to fund other critical services, such as education, child care, public health, housing, and public safety.
Beginning January 1, 22 2022, for taxes due in 2023, a wealth tax shall be imposed on each Washington resident. Exemptions and other provisions are outlined within the bill, including the first $1,000,000,000 of assessed value.