Why voting no on I-645 serves Washington and Snohomish County
Rejecting I-645 serves the interests of Washington state and Snohomish County. It is also the right choice for families who depend on Medicaid and other programs they rely on, because the measure would repeal the revenue measure known as the Millionaires Tax.
The federal budget package, H.R. 1, reduced federal support for Medicaid and nutrition assistance while delivering tax reductions averaging more than $90,000 for the wealthiest households in Washington state. That shift means Washington stands to forfeit roughly $3 billion a year in federal Medicaid funding, limiting access to care and jeopardizing the financial stability of rural hospitals and care providers.
In Snohomish County, Medicaid finances 37% of all births and related care. In rural counties, Medicaid covers close to three quarters of deliveries. Childbirth is a critical juncture where accessible, supportive care can determine whether a delivery is safe and healthy or traumatic and stressful for parents and infants. Facilities that deliver babies operate with very narrow margins, and Medicaid reimbursements often determine whether such a facility remains open. Rural birth centers in Washington were already under financial strain before federal Medicaid dollars were reduced. State legislators cannot make up that shortfall without the revenue generated by the Millionaires Tax.
The Millionaires Tax applies to roughly 1% of taxpayers. This 9.9% rate applies only to households earning above $1 million annually. For instance, a household with earnings of $1,000,500 pays the rate on only $500, amounting to about $50. The measure represents a meaningful correction to a state tax structure that has long favored a small number of wealthy residents, who pay far less to the state than typical working people. The highest earners pay an average rate of 4%, while those with the lowest incomes pay 14%.
Revenue generated by the Millionaires Tax translates into tangible benefits. Consider a family in Everett with two children. One parent works part time as a substitute teacher because childcare costs prevent full-time work, while the other is an accountant operating a small firm. Their household income is approximately $88,000.
Through revenue supported by the Millionaires Tax, both children receive free meals at school. The family qualifies for the expanded Working Families Tax Credit and receives a $995 annual refund. Small business tax relief funded by the measure cuts their business taxes by about $4,000. With these resources, the family can afford a behavioral specialist for their older child, who has autism. They can also replace the tires on their vehicle.
Health and financial wellbeing are connected. Years of research and basic common sense show that when families have the resources they need to cover the basic costs of everyday living, their educational, health, and employment outcomes improve. I-645 will take away essential revenue from our state budget and from the budgets of working families, just when we can least afford it. Aaron Katz, a resident of Anacortes and Principal Lecturer Emeritus at the University of Washington School of Public Health, urges us to vote no on I-645.