State fiscal pressure spotlight — Washington signs millionaires tax; rate cuts advance in South/GAs, others
Key Questions
What is the new millionaires tax signed in Washington state?
Gov. Bob Ferguson signed ESSB6346, imposing a 9.9% tax on income over $1 million starting in 2028, expected to generate $3.5 billion. It includes relief measures like prior hike repeals by 1/1/29.
Who is affected by Washington's new income tax?
The tax applies only to those earning over $1 million annually; those under that threshold keep all their income untaxed by this measure. Opponents, including tech billionaires, are challenging it legally.
What legal challenges are facing Washington's millionaires tax?
Opponents like McKenna and CADF filed instant lawsuits claiming it's unconstitutional. It was signed amid controversy on the same day challenges were announced.
Which states are cutting income tax rates?
West Virginia signed a 5% income tax cut; Georgia advanced SB476/477 for hikes and cuts; others like IN, KY, NE, OH, NC, OK offer relief. South Carolina refiled extensions to May 1.
What did Wisconsin Gov. Evers veto?
Evers vetoed GOP bills to eliminate income taxes on overtime and tips, and measures requiring counties to contribute more to state funds. This blocks OBBBA-like proposals.
What is California's AB1714 about?
AB1714 would allow a tax break for homeowners selling to first-time buyers, making homeownership easier. It targets relief amid state fiscal pressures.
What state tax deadline changes occurred in 2026?
States have varying deadlines beyond April 15 federal; South Carolina extended to May 1. Timelines detail major 2025-2026 changes, with some relief measures.
What Michigan tax issue reached the Supreme Court?
A Michigan family lost their home over a $2,242 tax bill, now under Supreme Court review. It highlights state backlog and foreclosure issues.
WA ESSB6346 signed (9.9% >$1M 2028, Ferguson, $3.5B rev, relief 7/1/26 prior hikes/full repeal 1/1/29, McKenna/CADF instant lawsuit unconst'l); GA SB476/477 hikes/cuts; WV 5% cut; SC refiles/ext May1; IN/KY/NE/OH/NC/OK relief; WI Evers veto OBBBA-like; CA AB1714 home credit; MI backlog.