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Washington Governor Bob Ferguson has rejected Democratic lawmakers’ plans to rely on a billion-dollar wealth tax to balance the state budget, citing legal uncertainties and concerns over sustainability. While open to limited discussion, he insists on a mix of spending cuts and new revenue to close a projected $16 billion shortfall over four years.
The proposed wealth tax would apply to financial assets exceeding $50 million, affecting about 4,300 individuals. House Democrats estimated $2 billion annually from an $8 per $1,000 tax, while Senate Democrats proposed $4 billion yearly with a $10 per $1,000 tax. Proceeds would support education programs, but opponents argue it could drive wealth out of Washington and face legal challenges.
Business groups and Republicans welcomed Ferguson’s stance, warning that the tax could violate the U.S. Constitution and deter investment. Meanwhile, Senate Democrats maintain that Washington’s tax code unfairly burdens lower-income residents and believe negotiations will continue.
With just weeks left in the legislative session, Democrats must now revise their budget strategy, balancing revenue needs with Ferguson’s fiscal concerns.
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