Washington Democrats Drop Wealth Tax for Menu of Other Tax Hikes

Democratic lawmakers in Washington announced a new state budget package Wednesday that replaces a proposed wealth tax and a sales tax rate cut with higher taxes on businesses and capital gains.

Lawmakers said they updated their revenue package based on feedback from their colleagues and the public. They dropped the wealth tax after Gov. Bob Ferguson (D) said he wouldn’t sign a budget that relies on a tax that’s certain to be challenged in court and would be difficult to implement.

The bills are expected to raise nearly $12 billion over four years to help close a budget shortfall estimated ...