Former Gov. Inslee Backs Millionaires Tax Endorsement in Olympia 2026

Key Points

• Official Endorsement: Former Washington Governor Jay Inslee has officially endorsed the state’s newly passed “millionaires tax,” becoming the sole living former chief executive of the state to explicitly back the measure.
• Policy Specifics: The law, scheduled to take effect in 2029, imposes a 9.9% tax on individual annual incomes exceeding $1 million.
• Revenue Allocation: Proponents estimate the levy will generate approximately $3 billion annually, earmarked for public education funding, low-income tax relief, and sales tax exemptions on essential items like diapers and hygiene products.
• Divergence Among Former Democratic Governors: Former Democratic Governors Christine Gregoire and Gary Locke have declined to endorse the policy, citing concerns over government spending growth and revenue management.
• Upcoming Obstacles: The tax policy faces a public repeal attempt on the November ballot, alongside an upcoming legal challenge before the courts regarding state constitutional bans on income taxes.

Olympia (Evening Washington News) July 30, 2026 – Former Washington Governor Jay Inslee has formally announced his endorsement of Washington state’s controversial “millionaires tax,” positioning himself as the only living former governor to support the newly enacted fiscal measure. The endorsement comes as the law, passed by state lawmakers earlier this year, faces a dual challenge in the form of a statewide repeal measure on the upcoming November ballot and a pending constitutional lawsuit expected to reach the state Supreme Court. The legislation establishes a 9.9% tax on personal incomes above $1 million beginning in 2029, with projected annual receipts of $3 billion directed toward state educational investments and targeted tax breaks.

Why Did Jay Inslee Offer His Support For The Millionaires Tax?

Former Governor Jay Inslee, a Democrat who led the state from 2013 to 2025, framed the policy as a vital structural repair for Washington’s revenue system. State tax policy analysts have long categorized Washington’s tax framework as regressive, owing to its heavy reliance on retail sales and property taxes in the absence of a personal income tax.

As reported by Sarah Mizes-Tan of KUOW, Inslee described the statute as an “important step” toward rebalancing the state’s tax distribution.

In a written statement detailing his stance, Inslee declared:

“I would have proudly signed the Millionaires Tax if it had come to my desk as governor, and I support Governor Ferguson and the legislature continuing to reform the upside down tax code so that we can keep essential services and reduce the tax burden on low- and middle-income households.”

Inslee’s public stance aligns him directly with current Democratic Governor Bob Ferguson and the legislative majority in Olympia who authored the reform.

Why Are Other Former Democratic Governors Hesitant To Support The Tax?

Despite Inslee’s endorsement, the measure has failed to secure unanimous backing among former Democratic leaders in the state.

Both former Governor Christine Gregoire (who served from 2005 to 2013) and former Governor Gary Locke (who served from 1997 to 2005) have declined to endorse the high-earner tax, expressing reservations regarding state expenditure levels and legislative fiscal priorities.

As reported by Sarah Mizes-Tan of KUOW, Gregoire addressed a gathering of business leaders in May, where she pointed out that the Washington state budget had expanded significantly since her departure from office in 2013.

Gregoire voiced criticism toward Governor Bob Ferguson and legislative Democrats for relying on new tax mechanisms rather than implementing structural spending reductions to balance state accounts.

Similarly, Gary Locke publicly raised doubts regarding the administration of the new revenue. As reported by Sarah Mizes-Tan of KUOW, Locke stated during an interview with KOMO News earlier this month that he remained uncertain whether the projected tax receipts would effectively resolve ongoing budget deficits, questioning whether lawmakers could deliver on their expenditure promises.

In his interview with KOMO News, Locke remarked:

“The question is what will Olympia do with that money if the voters say yes?”

How Is The Opposition Campaign Organising Against The Tax Measure?

Opponents of the high-earner tax have already mounted a organized effort to roll back the policy prior to its scheduled 2029 implementation. A statewide ballot initiative aimed at repealing the law has qualified for the upcoming November election.

The repeal effort is heavily financed and spearheaded by hedge fund manager Brian Heywood, who has argued that the 9.9% tax on top earners sets a precedent for broader revenue measures affecting lower income brackets.

As reported by Sarah Mizes-Tan of KUOW, Heywood expressed concern over potential tax expansions, stating in a public communication calling for the repeal:

“Every wage earner and voter knows they have a target on their back, and this income tax is coming for all of us.”

Beyond the political sphere, the legislation faces a formal constitutional challenge. Washington state jurisprudence regarding income taxation dates back nearly a century. In the 1930s, the Washington State Supreme Court ruled that graduated income taxes violate the state constitution’s property tax provisions, which require uniform taxation across property classes.

The current legal challenge seeks to test whether the modern judiciary will uphold or overturn that landmark precedent, with proceedings expected to reach the state Supreme Court next year.

What Is The Background Behind Washington State’s Millionaires Tax Policy?

Washington state has historically operated without a personal or corporate income tax, relying instead on sales tax, business and occupation (B&O) taxes, and property levies to fund state operations.

Over several decades, this fiscal architecture has generated recurring debates among policy makers, economists, and legal scholars regarding tax equity and revenue stability.

In recent legislative sessions, growing budget obligations—particularly in K-12 education, public healthcare, and social safety net programs—prompted lawmakers in Olympia to explore alternative revenue sources targeting high net-worth individuals.

Earlier this year, the Washington State Legislature formally passed the “millionaires tax,” establishing a 9.9% levy on individual earnings exceeding $1 million per year.

The statutory framework delays implementation until 2029 to accommodate legal reviews and administrative setup.

When active, the levy is projected to raise approximately $3 billion annually. State leaders have legislated that these funds be allocated to public school systems, targeted tax credits for lower-income households, and retail sales tax eliminations on diaper products and personal hygiene supplies.

How Could Former Governor Jay Inslee’s Endorsement And The Upcoming Ballot Measure Affect Washington Taxpayers And Business Owners?

The endorsement by former Governor Jay Inslee consolidates support among progressive advocacy groups and mainstream Democratic constituencies ahead of the November vote.

However, the publicly expressed skepticism from former Governors Gregoire and Locke highlights a division within the state’s moderate political base, which could influence undecided voters during the fall referendum.

For high-income residents and business owners earning in excess of $1 million annually, the outcome of the November ballot measure and subsequent 2027 court rulings will determine whether they face a 9.9% state levy starting in 2029.

Financial advisors and corporate leaders in the Puget Sound region continue to monitor the proceedings, as the tax policy could influence personal residence choices, executive compensation models, and business location decisions.

For low- and middle-income families, the validation or repeal of the law directly impacts promised tax relief measures. Should the law survive both the November recall effort and judicial review, working-class households stand to receive targeted tax credits and exemptions from sales tax on essential household items.

Conversely, if voters approve the repeal initiative, state lawmakers will be required to reconcile existing public service commitments without the anticipated $3 billion in annual tax revenue.