Advocates Campaigned Against Washington State Tax Repeal

Business owners should assess how the outcome of Initiative I-645 affects state education and child care funding.

Updated on Oct. 2, 2026 in Philanthropy

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Advocates are campaigning against Initiative I-645, a Washington state ballot measure that would repeal a 9.9% income tax on high earners, potentially cutting $320 million in annual funding for child care. AI Illustration. Upload story photo >

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Tri-City advocates have mobilized against Initiative I-645, a ballot measure appearing this November that seeks to repeal the state’s tax on income exceeding $1 million. The tax, which currently applies a 9.9% levy, is projected to provide $320 million annually for child care.

Why it matters

The outcome of the vote will dictate the state’s fiscal capacity, as proponents of the tax warn that a repeal would result in $13 billion in funding cuts for essential services. Businesses relying on state-supported education and health care infrastructure face significant shifts in budget allocation should the measure pass.

A recent poll of 400 Washington residents showed 57% opposing the repeal of the 9.9% tax, which applies to income over $1 million. The levy is expected to provide $320 million for child care, while a repeal could trigger $13 billion in state funding cuts.

The players

DHM Research

A research firm that conducts public opinion polling and analysis.

The details

Initiative I-645 would eliminate a 9.9% levy on high-earner income, a measure currently scheduled to begin collection in 2028. Supporters of the repeal argue the tax discourages wealth retention, while opponents contend that cutting the revenue stream would force deep reductions in public education, health care, and family tax credit programs. Campaigners have focused on door-to-door outreach and phone banking to shift voter sentiment ahead of the November 3 midterm.

Timeline

  1. September 2026: DHM Research polled 400 Washington residents.

  2. October 16, 2026: Registered voters receive their election ballots.

  3. November 3, 2026: Midterm election date.

  4. 2028: Millionaires tax collection is scheduled to begin.

Market Landscape

The vote on Initiative I-645 marks a critical turning point for the state’s fiscal policy regarding the Washington state millionaires tax. It follows a broader trend of legislative battles over wealth-based taxation that directly impacts state-level service funding.

Operators should monitor the November 3 election results to gauge potential changes in state funding for child care and education. Review internal budgets for dependencies on state-funded services that may face cuts if the repeal passes.

The takeaway

The November ballot initiative creates uncertainty for state-funded programs and long-term tax liabilities for high-income earners. Monitor the election outcome on November 3 to assess whether to adjust your tax planning or community investment strategies for the upcoming fiscal year.

Further reading

For context on how state-level funding shifts affect community initiatives, see Philanthropy.

Source note: This article includes information reported by Tri-City Herald.

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Should states maintain taxes on millionaires to fund public education and child care?