Ballot Initiatives on Wealth Taxes Should Get Court Scrutiny

Featured in Bloomberg Tax, Robert F. Mancuso draws attention to one of the most publicized referendums: the 2026 Billionaires Tax Act currently being promoted in California.

Photographer: Al Drago/Bloomberg via Getty Images

The Washington Supreme Court ruled on May 4 that the state’s new income tax on high earners—which imposes a 9.9% levy on annual income exceeding $1 million per year starting in 2028—wouldn’t have to be approved via a ballot initiative or popular referendum.

The decision relied on the interpretation of Washington’s referendum power and that the tax laws generating revenue to support the government aren’t subject to popular referendum, so it may have little precedential effect in other jurisdictions. But the defeat of the petitioner’s request to submit the tax to a referendum via a ballot initiative this coming November may have impact elsewhere.

“This ruling states that the people cannot challenge via referendum any tax imposed by the legislature, removing any guardrails from the people on runaway spending,” the petitioner said in a statement. The measure’s backers “now have a blank check to spend beyond their means and raise taxes later, and the people don’t get to weigh in” he added.

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