Washington state is considering a bill aimed at making its estate tax more progressive, with House Bill 2019 sponsored by Rep. Chipalo Street D-Seattle.
The bill proposes increasing the estate tax exclusion amount to $3 million for estates of decedents who pass away after January 1, 2025.
Republicans on the House Finance Committee support this increase but are opposed to other provisions of the bill, including annual inflation adjustments to the exclusion amount and higher tax rates for estates exceeding certain thresholds.
Washington currently does not have an inheritance tax, but it does impose an estate tax, which taxes the decedent’s estate, not the beneficiaries. Critics refer to this as a death tax.
Rep. Street argued that the bill is part of an effort to create a more progressive tax system, ensuring those with greater wealth contribute more to state services.
However, Republicans, including Rep. Cyndy Jacobsen R-Puyallup, raised concerns about the potential for wealthy individuals to move out of state due to the high taxes, citing examples like The Beatles’ departure from the U.K. due to excessive taxation.
Critics like Frank Willmann, a Bainbridge Island resident, and Minority Leader John Braun R-Centralia) also voiced strong opposition to the bill, warning that it would worsen the state’s already punitive estate tax and drive away business owners and wealthy individuals.
The bill, if passed, would see estate tax rates increase from 16% to 38%, which opponents argue could hurt family-owned businesses and impact long-term business succession.