About Washington state’s tax code - Budget and Policy Center

Washington famously has the second most inequitable tax code in the nation, relying on those with the least to pay the most.

Revenue in the budget continues to fail to meet community needs because lawmakers are not requiring that millionaires, billionaires, and highly profitable corporations pay their share of taxes. As a result, important programs are chronically underfunded, like schools, child care, and mental and behavioral health programs. Meanwhile, our state budget continues to rely on regressive revenue sources that are not keeping pace with economic growth and inflation.

But don’t just take our word for it. The numbers speak for themselves:

Click on image to enlarge.

(PS) The passage and implementation of the capital gains tax and the Working Families Tax Credit did help take our tax code from worst in the nation to second worst in the nation, which is good news. The capital gains tax continues to infuse money into early learning and schools while the working families tax credit is providing a cash boost to households throughout the state who need it. So we would be remiss if we didn’t mention that with the below graphic. But of course, much more is needed to fix our tax code!