OLYMPIA, WA — Washington Governor Bob Ferguson announced Tuesday that he supports the adoption of a proposed millionaires’ tax, though he emphasized that the measure would not address the state’s short-term budget challenges, according to a press release from the Office of the Governor.

The proposed tax would apply to individuals earning more than $1 million in annual income, not to those whose net worth reaches that level through assets such as home values. Ferguson said the tax is not included in his supplemental budget proposal because revenue from the measure would not be realized for several years.

During a press conference, Ferguson said he believes revenue generated from a millionaires’ tax should be directed toward returning money to working families and small business owners most affected by what he described as Washington’s unequal tax structure. He noted that the impacts of that system have been intensified by recent federal economic policies.

According to data cited by the governor’s office, Washington ranks near the bottom nationally in tax fairness. Families in the lowest 20 percent of income earners pay an estimated 13.8 percent of their income in state and local taxes, while those in the top 1 percent pay about 4.1 percent.

Ferguson said fewer than one-half of one percent of Washington residents would be subject to the tax, which he said could raise at least $3 billion annually. He also expressed support for codifying the $1 million income threshold into state law with inflation adjustments, potentially through a constitutional amendment, to ensure the tax does not expand to lower-income earners.

The governor outlined several potential uses for the revenue, including expanding Washington’s Working Families Tax Credit, reducing business and occupation taxes for small businesses earning under $1 million in revenue, increasing K-12 education funding, and eliminating sales taxes on certain essential goods such as hygiene products, baby items, and affordable clothing.

Ferguson acknowledged that lawmakers may propose additional uses for the revenue and said he looks forward to discussions during the legislative session. He reiterated his position that a significant portion of funds generated by a millionaires’ tax should be returned to Washington residents to help offset rising costs of living.