The Legislature has passed SB 6346, the so-called Millionaire Tax, and the governor intends to sign it into law—unless you help us stop him.

Your emails to your local legislators made a difference. We came close to defeating this new income tax. Twice. The bill passed the state Senate by three votes. The margin was just two votes in the House.

We need your help again.

This time we want to flood Gov. Ferguson’s office with emails and phone calls opposing this new statewide income tax. Can we count on you to continue the fight?

Act Now. Act Here

Here’s why small businesses need to speak up:

— This is a new income tax on every Washingtonian. It starts with a $1 million deduction, but the Legislature could lower or eliminate that deduction at any time.

— Small businesses are specifically targeted, but C-corporations are exempt.

— 85% of small businesses are organized as “pass through entities” for federal tax purposes: sole proprietorships, partnerships, LLCs, and S-Corps. The bill has several provisions explaining the process for applying this new income tax to small-business owners who report their business earnings and expenses on their personal income tax forms.

— Small business owners should be exempt the same way big corporations are. Business earnings are not the same as take-home pay.

— Taxing a small business’ retained earnings will make it extremely difficult to plan for expansion, make capital improvements, purchase equipment and machinery, or even maintain normal operations from year to year when revenue is uncertain, the business experiences a loss, projects end, or customers are in arrears.

— This new income tax is in addition to the Business & Occupation Tax, so small-business owners who have already paid B&O on every dollar their business earned may have to pay another nearly 10% tax on part of those same earnings.

— Very small businesses, those with about $250,000 to $500,000 in annual revenue will see some modest “tax relief” through a partial B&O tax credit. Meanwhile, thousands of pass-through owners will pay higher B&O taxes plus this new income tax. This is not the “small business tax relief” we were promised.

Act Now. Act Here.

Please ask Governor Ferguson to veto SB 6346, the Millionaire Tax on small businesses.

NOTE: Personalized messages get the attention of lawmakers. Click the green pencil to share your story on what increased taxes mean to your business. Does this hurt your ability to increase wages to retain employees? Are you considering new equipment? Utilize the talking points above for reference.

IMPORTANT: Once you take action with the email you will see a link on the confirmation to make a phone call also.