Public-Sector Unions Raised Funds to Defeat Initiative 645
Washington unions have committed millions to oppose the measure seeking to repeal the state's capital gains tax.
Updated on Sept. 22, 2026 in Unions
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Should public-sector unions fund campaigns to protect the tax revenue that supports their members' jobs?
Public-sector unions have raised $7.8 million to successfully oppose Initiative 645, which sought to repeal Washington's capital gains tax. The tax, which carries a 9.9 percent rate, is projected to generate $3 billion in annual revenue.
Why it matters
Union members rely on the tax revenue generated by the levy to fund public services and sustain their salaries. Protecting this stream of funding motivated the significant financial investment from labor groups in the state.
The campaign to repeal the state tax raised $1.3 million, trailing the $7.8 million raised by unions. This tax applies a 9.9 percent rate to households earning over $1 million, impacting an estimated 25,000 households.
The players
Washington Education Association
This is a prominent labor union representing teachers and educational staff in Washington.
SEIU 775
This organization is a large union that represents long-term care workers and other service employees in the region.
The details
The Washington Education Association contributed $3 million to the opposition effort, while SEIU 775 provided nearly $2 million and the state employees union added $1 million. The funds were directed toward defeating Initiative 645 to maintain the revenue framework that supports state operations and public services.
Timeline
The 9.9 percent income tax is scheduled to take effect in 2029.
Political Context
This effort to repeal Washington's capital gains tax mirrors a broader national debate over taxing high-income households to fund state-level public programs. Opponents argue the tax creates an unstable fiscal environment, while supporters maintain that the revenue is vital for consistent service delivery.
The failure of the repeal initiative ensures that the tax remains on the books, affecting the top 25,000 high-earning households in the state. Average taxpayers will not see changes to their personal income tax rates as a result of these specific campaign outcomes.
The takeaway
The heavy financial involvement of labor unions highlights the deep dependency of public-sector employment on state revenue streams. Maintaining stable tax policy remains a primary objective for these organizations to ensure future budgetary security.
Further reading
Learn more about the influence of organized labor in state policy by visiting Unions.
Live Poll
Should public-sector unions fund campaigns to protect the tax revenue that supports their members' jobs?
