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WA Democrats consider retreat on estate tax, fearing wealth exodus

Washington lawmakers seek to reverse the 35% top estate tax rate to prevent wealthy residents from relocating, as the tax generated $535 million annually before the increase.

  • In Olympia, the Washington State Senate advanced Senate Bill 6347, introduced Feb. 4, to undo last year's estate tax increase, lowering the top rate back to 20%.
  • Senate Majority Leader Jamie Pedersen said lawmakers have received anecdotal reports of wealthy/mobile taxpayers considering redomiciling, while business groups warned recent years' tax increases prompt relocation and investment concerns.
  • After a brief Feb. 6 public hearing, the Senate Ways and Means Committee quickly passed the bill, which would reset eight estate tax brackets, keep the $3 million exemption, and set the $12 million threshold for highest rates.
  • Advancing the rollback could set up a full Senate vote and, if approved, would require Gov. Bob Ferguson's signature to become law, potentially reducing revenue by more than $10 million annually for the Education Legacy Fund.
  • Amid debate over the 'millionaires tax,' Senate Democrats advance the estate rollback despite dissent and business warnings; a legal challenge is likely, lawmakers said.
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The Center SquareThe Center Square
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Democrats quietly pushing rollback of estate tax increase

(The Center Square) – As majority Democrats in Olympia push ahead with a controversial income tax bill, they are also moving to roll back another tax-the-rich policy passed during the

·United States
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The Columbian broke the news in Vancouver, United States on Monday, February 16, 2026.
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