Washington Trucker Sues State Over New 9.9 Percent Millionaires Income Tax
A Washington trucking company owner is suing the state over a new 9.9 percent "millionaires" income tax. The lawsuit was filed recently in state court and challenges the law's reach and effect on small businesses and pass-through income. The plaintiff says the tax hits small firms that report owner income on personal returns and could raise costs for family-owned trucking operations.
Supporters of the measure argue it raises revenue for public services, while opponents call it burdensome to job creators and small businesses. Activists and commentators have discussed the case on social media, framing it as a test of tax fairness and of how the state treats small-business income. The lawsuit's outcome could shape enforcement and future challenges to Washington's top marginal tax and influence state business climate debates.
đ Key Facts
- Washington enacted a 9.9 percent income tax on income over $1,000,000 for individuals and households, passed March 11 and signed March 30 by Gov. Bob Ferguson
- Trucking company owner Curt Nuccitelli, whose profits are taxed as personal income, is a named plaintiff in a lawsuit challenging the tax
- Citizen Action Defense Fund, with former AG Rob McKenna and former Sen. Phil Talmadge, argues the tax violates a 1933 state Supreme Court ruling that treats income as property and caps such taxes at 1 percent
- The Washington Attorney General's Office says it will defend the law's constitutionality and expects to prevail in court
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