Initiative 645 would gut critical programs for Washingtonians
Initiative 645 is largely being framed as repealing the Millionaires Tax, but its broader language could have even more significant consequences beyond this single tax. Because I-645 also prohibits all taxes that are “measured by” income, it jeopardizes funding mechanisms for several well-known and popular programs on which Washington families depend, including unemployment insurance, paid family and medical leave, and Washington’s long-term care program (WA Cares). It also threatens the Capital Gains Tax, which would widen the budget hole even more if we lost this revenue.
The campaign to defeat Initiative 645 kicked off July 14, with union members, workers, and community advocates gathering with one simple message: Vote NO on Initiative 645 this November.
Initiative 645 is being led by the political committee called, Let’s Go Washington, which is financed by millionaire and hedge fund founder Brian Heywood and some of his closest fellow millionaire friends, who have everything to gain with its passage. This initiative would be detrimental to the working people of this state, blow a huge hole in the state budget, and benefit millionaires directly.
Programs impacted could include Unemployment Insurance, Paid Family and Medical Leave (PFML), and Washington’s long-term care program (WA Cares).
For many Washington families, these programs are part of everyday life. PFML can help you recover from a serious illness, help new parents stay home to bond with their baby, or allow workers to care for an ill family member without losing income. Unemployment Insurance provides a financial bridge after unexpected job loss and includes striking workers. WA Cares helps people afford long-term care as they age, reducing financial pressure on families. If this initiative passes, it has the potential to bankrupt these programs, causing working people to face even greater financial uncertainty.
The repeal of the capital gains tax, which generated $1.5 billion in revenue in 2025, would cut a significant hole in the state’s budget, in addition to an expected loss of about $42 billion over the next 10 years from the federal government due to the passage of H.R. 1. Besides gutting these critical funding mechanisms on which the state relies, I-645 would keep several cuts that legislators made in the 2026 session that the Millionaires Tax was intended to offset.
The Millionaires Tax will establish a 9.9% excise tax on adjusted household incomes of $1 million and over. For example, if a household earns $1,000,100 in a year, only the final $100 is subject to the 9.9% rate, resulting in $9.90 in tax. Fewer than 20,000 Washington households, or less than 0.5% of all households, will pay this tax. It does not apply to retirement accounts, home sales, or accumulated assets.
Repealing the Millionaires Tax would remove revenue that lawmakers have already dedicated to expanding the working families tax credit, investing in childcare and early learning, supporting K-12 education and healthcare, providing free school meals, and reducing taxes for many small businesses.
Revenue from the Millionaires Tax feeds into the state’s general fund, which will support:
- Essential health services, including support for Apple Health, protecting and expanding our healthcare safety net, and mental health services.
- Expansion of the Working Families Tax Credit.
- Elimination of sales tax on essential household items.
- Expiration of the sales and use tax on retail.
- Fair Start for Kids, which provides free and low-cost childcare and early learning programs.
- K-12 and higher education.
- Business & Occupation tax relief for qualifying small businesses.
Separate from the ballot initiative, the Millionaires Tax is also facing a constitutional challenge in court. The lawsuit was filed in Klickitat County by former Attorney General Rob McKenna and is expected to eventually reach the Washington Supreme Court with a decision unlikely before late 2027.
This election year, an astounding five seats are open for the Supreme Court. If flipped, the election outcome could significantly reshape the court that ultimately hears the case. If this initiative passes, we would also likely see court challenges to other programs threatened by the initiative. That is why the Washington State Labor Council (WSLC) has endorsed candidates who have deep legal knowledge and will support the rights of working families and everyday Washingtonians.
Go to www.no645.com, and sign up to receive updates and help educate your family and friends about what I-645 would mean to working people in Washington state.