Washington State is one of a handful of states without a state income tax. Lawmakers have attempted to institute a Washington State income tax in prior years with little success. Currently, Bill Gates Sr., a prominent Seattle area attorney, is promoting a new Washington State income tax on individuals with adjusted gross income above $200,000 and joint-filers with adjusted gross income above $400,000 (the initiative also reduces state property and business taxes). Proponents of I-1098 argue that it would raise $2 billion annually for education and health services from only 1.2 percent of all Washington households. Opponents of the tax believe that it would hinder the state's ability to attract talented executives and business people and argue that state lawmakers could lower the income thresholds with a majority vote two years after the initiative is enacted.
Here is an article from the Olympian that discusses the initiative.
Below is the Ballot Title and Summary from the Secretary of State's website, as well as a hyperlink to the complete text of the initiative:
Ballot Title
Statement of Subject: Initiative Measure No. 1098 concerns establishing a state income tax and reducing other taxes.
Concise Description: This measure would tax “adjusted gross income” above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health.
Ballot Measure Summary
This measure would establish a tax on “adjusted gross income” (as determined under the federal internal revenue code) above $200,000 for individuals and $400,000 for married couples or domestic partners filing jointly; reduce the limit on statewide property taxes by 20%; and increase the business and occupation tax credit to $4,800. The tax revenues would replace revenues lost from the reduced levy and increased credit; remaining revenues would be directed to education and health services.
Click here to see the complete text of Initiative 1098.