On Nov. 5, voters rejected three measures: Initiative 2117 to repeal the state’s Climate Commitment Act that requires companies to cut emissions via carbon credit auctions, Initiative 2109 to repeal the state’s 7% capital gains tax, and Initiative 2124 to allow workers to opt out of the new long-term care tax.

Initiative 2066, which prohibits the state from enacting laws or regulations to discourage the use of natural gas, was approved by voters and went into effect on Dec. 5.

At a legislative preview last week, Democratic leaders brought up the fact that a majority of initiatives were rejected by voters. 

“If revenue is paired with important purposes, then I think we have a signal from the voters that they’re willing to accept that, and they largely upheld the work that we’ve done over the last six years,” Senate Majority Leader Jamie Pedersen, D-Seattle, said.

House Majority Leader Joe Fitzgibbon, D-Burien, agreed.

“Our caucus has also very much taken note of the results of the initiatives that were on the ballot,” he said.

They then segued into the possibility of tax increases.

“So, you know, for those reasons, we are going to be seriously looking at a variety of options that might increase taxes on wealthy individuals and wealthy companies,” Pedersen said.

Fitzgibbon backed up his colleague.

“So I think that we have heard loud and clear from Washingtonians that they want us to invest in education, that they want us to invest in long-term care, they want us to invest in a clean and healthy and sustainable environment,” he said.

A Republican lawmaker cautioned Democrats not to read too much into three of the four initiatives going down to defeat, noting anti-initiative groups outspent pro-initiative groups $40 million to $2 million.

“So when you’re outspent … that’s going to move the needle, and you need to take that into consideration,” House Minority Caucus Chair Peter Abbarno, R-Centralia, said.

Pedersen recently reiterated the idea of a wealth tax, specifically noting the failure of I-2109.

“I suspect that we will need additional revenue, so we’ll have a balanced approach,” he told Fox 13 Seattle, going on to mention the possibility of “taxing that wealth for people who have above, say, $50 million or more…”

He stated that Washington has “a complete exemption of intangible property, like stocks and bonds from the property tax. Also, that’s something worth considering.”

Rep. Chris Corry, R-Yakima, the ranking member of the House Appropriations Committee, strongly disagreed.

He told Fox 13 Seattle that taxing stocks that fluctuate in value every year makes no sense, adding that taxing unrealized gains would drive innovators and investors out of the Evergreen State long-term.

During this year’s legislative session, Senate Bill 5486, which would have created a “narrowly tailored property tax on extreme wealth derived from the ownership of stocks, bonds, and other financial assets,” with the first $250 million of assessed value exempt from the tax, failed to pass the Legislature.

The 105-day 2025 legislative session convenes on Jan. 13.