Washington voters shoot down repeals of climate law, capital gains tax, WA Cares

Three of four initiatives to repeal state laws on Washington’s ballot failed Tuesday night. The result will maintain the state’s Climate Commitment Act, long-term insurance program and capital gains tax.

Put on the ballot by conservative advocacy group Let’s Go Washington, the four initiatives would have undone or modified legislation passed in recent years. But as of 8:30 p.m. Tuesday , three of the initiatives were defeated, while a fourth remained too close to call.

Let’s Go Washington founder Brian Heywood, who financially backed the initiatives, said in a statement Tuesday night that it was not what they “would have wanted to see.”

“We have already won, because the people in this state know they can mobilize to hold their government accountable. We are proud of every single volunteer, supporter and voter who believed that it was time to fix what’s broken,” he said.

Here’s a look at the measures that appear to have failed.

Initiative 2117

The repeal of the state’s cap-and-trade carbon emissions system was the closest of the four initiatives as of early Tuesday. As of 8:30 p.m., only 44.2% of voters had approved the measure.

Initiative 2117 would repeal the state’s “Climate Commitment Act,” a wide-ranging law attempting to reduce Washington’s carbon emission. The 2021 law requires businesses that emit the most carbon to bid for an “allowance” of their portion of the state’s total carbon emission.

This cap-and-trade system has raised billions since the first auction into 2024, which has since gone toward hundreds of state projects, including the purchase of electric buses, air quality monitors and air filters in schools and other climate-related initiatives.

Proponents of the initiative argue this system forces large oil and gas companies to pass on these new expenses to consumers – effectively causing the price of gas to increase. Opponents of the measure argue the act is needed to meet state climate targets and fund state projects.

If passed, the initiative would kill cap-and-trade outright and bar the state from trying again in the short term. The state would still have a goal to achieve net-zero emissions by 2050, but a key tool to pressure corporations to reduce emissions would be taken from the state’s toolbox.

Initiative 2124

The state’s long-term health care insurance program will remain mandatory to pay into for Washington workers. Initiative 2124 failed with only 44.4% of voters approving it as of 9 p.m. Tuesday.

Initiative 2124 allows Washington workers to opt out of the state’s long-term care insurance. The WA Cares program will provide a modest one-time benefit of $36,500 to those who have paid 0.58% of each paycheck into the fund. Passed in 2019, WA Cares is intended to help with expenses such as a home health aide or to supplement the income of a family member taking care of a loved one.

Proponents of the initiative argued Washingtonians should not be forced to pay into a program they may not want. Opponents have said that making the program optional would cause WA Cares to enter a financial death spiral.

The No on 2124 campaign has raised $13.3 million to defeat the initiative, while Let’s Go Washington raised less money to advocate for all four initiatives combined.

Initiative 2109

Washington’s wealthiest residents will still have to pay the state’s capital gains tax. As of 9 p.m., voters across the state rejected Initiative 2109 Tuesday, with 63.2% of voters opting against removing the 7% tax approved by the state Legislature in 2021.

The initiative took aim at a tax on the gains over $250,000 per person from the sale of certain investments like stocks, bonds or some types of businesses, with exemptions for certain properties and retirement accounts.

As of the end of 2023, the state had collected $895 million from 3,354 taxpayer accounts through the tax. A breakdown by the state Department of Revenue shows the vast majority came from King County; with more than $748 million collected from 2,187 individuals or households, it is the home of the most payers. Spokane County was sixth on the list, with just under $9 million collected from 84 individuals or families.