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TaxBuzz Top 5 - Washington State Unveils 'Millionaire Tax' Proposal, Amazon Pays BILLIONS Less in Taxes Due to Trump Tax Changes & More

by
Rebekah Barton
on
2/6/2026
TaxBuzz Top 5 - Washington State Unveils 'Millionaire Tax' Proposal, Amazon Pays BILLIONS Less in Taxes Due to Trump Tax Changes & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world. 

1. Washington Democrats Unveil 9.9% Millionaires Tax as Income Tax Debate Heats Up

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Credit: Chris Boswell/Getty Images

Washington State Democrats officially introduced Senate Bill 6346 and a companion House bill that would create a 9.9 % tax on personal income above $1 million, a major shift for a state that has historically banned income taxes. The proposed tax is aimed at raising about $3.7 billion annually to fund public services like education, health care, and tax relief for lower- and middle-income families while modernizing Washington’s regressive tax structure.

The plans would phase in the tax beginning in 2028, with the first payments due in 2029, and would adjust the $1 million threshold for inflation to protect middle-income earners. Democrats say the tax would help rebalance a system where working families often pay a higher share of income in state taxes than the wealthy.

Governor Bob Ferguson has expressed support for taxing wealthy residents in principle but has criticized the current bill, saying it doesn’t include sufficient offsets or tax reductions for working families and small businesses. Republicans and business leaders warn the new income tax could imperil economic competitiveness and potentially expand to lower earners over time.

The move requires overturning or amending Washington’s 2024 legislative ban on income taxes, which lawmakers can now do with a simple majority since the ban was passed by the Legislature rather than by voters. Opponents argue this tactic could set a precedent for future tax expansions.

Public hearings are scheduled as the Legislature debates the proposal during the fast-moving 60-day session, with legal challenges likely if the measure advances.

2. Weight-Loss Drugs And Soft-Drink Taxes Helping Drive Down Sugar Consumption

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Credit: bauwimauwi/Getty Images

Sugar consumption in the United States and Western Europe is declining as the growing use of appetite-reducing weight-loss drugs and higher soft-drink taxes dampen demand for sugary products, industry analysts say. In the past two years, Reuters reports, sugar use has fallen about 4.4 % in the U.S. and 6.7 % in Western Europe, with global growth in sugar demand forecast to slow sharply in 2026/27.

Experts point to a rise in GLP-1 class weight-loss medications like Wegovy and Zepbound, which reduce cravings for high-sugar foods, as a key factor curbing consumption; roughly one in eight U.S. adults has used these drugs, and their popularity is expected to expand as patents expire.

At the same time, taxes on sugary soft drinks in countries including the U.K., Mexico and South Africa have encouraged beverage makers to cut sugar content, further reducing overall sugar demand.

The weakening appetite for sugar has contributed to sugar factory closures in parts of the U.S. and Europe and pushed prices to multi-year lows, a trend that analysts say could continue if drug use and tax-driven reformulations increase.

While rising demand in parts of Asia and Africa linked to population growth still offsets some declines, decades of global sugar consumption growth appear to be slowing markedly.

3. Trump Tax Law Cuts Amazon’s Corporate Tax Bill by Billions

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Credit: Daria Nipot/Getty Images

A major Republican-backed tax overhaul signed by President Donald Trump dramatically reduced the U.S. corporate tax paid by Amazon in 2025, even as the company’s profits surged. According to The Wall Street Journal, Amazon’s U.S. income tax obligation fell by more than half — dropping from roughly $9 billion to around $1.2 billion — while U.S. pretax profit climbed nearly 45%, as provisions allowing immediate deductions for capital investment and R&D expensing cut its taxable income.

On a cash basis, Amazon paid about $2.8 billion in federal taxes versus more than $7 billion in prior years, illustrating how the new law’s incentives for domestic investment can sharply reduce cash tax bills for major corporations. Supporters of the law argue these changes spur investment in data centers and technology, while critics say they tilt the tax code in favor of large firms and contribute to lower corporate tax burdens overall.

Overall, the changes reflect larger shifts in U.S. tax policy under the “One Big Beautiful Bill Act,” which permanently extends lower individual rates and reshapes corporate provisions, even as debates continue over the balance between investment incentives and revenue needs.

4. Utah Gas Tax Shake-Up Sparks Regional Pushback and Industry Opposition

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Credit: halbergman/Getty Images

Utah lawmakers are advancing a proposal to restructure the state’s gas tax by cutting the consumer tax at the pump roughly in half while imposing a new tax on refineries’ fuel output, a plan supporters say would lower fuel costs for Utah drivers but shift tax obligations upstream to producers and potentially neighboring states. The bill would reduce the current roughly 39 cent per gallon tax paid by motorists to about 19 cents and replace lost revenue with a refinery levy, a move aimed at keeping prices down locally while still funding transportation infrastructure.

The petroleum industry has raised alarms about the plan, warning that higher refinery taxes could distort regional fuel markets and ultimately raise gasoline prices in states like Idaho, which imports nearly all of its refined fuel from Utah refineries and has no in-state refining capacity.

Idaho’s Legislature has reacted sharply, passing a memorial opposing the Utah tax shift and criticizing it as a de facto export tax that could increase costs for Idaho families, farmers and businesses without corresponding benefits for Idaho’s transportation system.

Utah sponsors of the bill defend the refinery tax as a way to help residents by lowering pump costs and ensuring a “fair deal” for local drivers, dismissing Idaho’s objections as political grandstanding and emphasizing their responsibility to Utah taxpayers.

The proposal has become a flashpoint in a broader debate over how to fund roads and bridges while balancing fuel prices, interstate commerce concerns, and industry competitiveness, with critics suggesting the draft plan could raise constitutional questions under interstate commerce principles if it disproportionately impacts non-Utah consumers.

5. Georgia House Pulls Kemp’s Tax Rebate Plan, Redirects Surplus Toward Property Tax Relief

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Credit: Walter Bibikow/Getty Images

Georgia lawmakers in the state House moved to strip Gov. Brian Kemp’s proposed $1 billion tax rebate — which would have sent roughly $250 to single filers and $500 to joint filers — out of the amended state budget, opting instead to focus surplus funds on lowering property taxes for homeowners. Kemp’s rebate plan, pitched as the fourth straight year of one-time tax relief, now faces new hurdles as legislators debate other ways to reduce the state’s tax burden.

The shift comes amid broader discussions in Georgia this session over major tax reforms, including proposals to cap or eliminate local property taxes by 2032 and even proposals from some Republicans to eliminate the state income tax entirely over the next decade, a move that would dramatically redo how Georgia funds core services. We extensively covered this in last week's TaxBuzz Top 5.

House Republicans argue that redirecting surplus dollars toward sustained property tax cuts could provide more meaningful, longer-term relief for homeowners than another round of one-time rebates, which critics say are short-lived.

Democrats and some local officials have warned that aggressive tax cuts — whether through rebates, property tax elimination or an income tax phase-out — risk straining revenue for schools, infrastructure and public safety, potentially forcing lawmakers to find replacement revenue sources.

This debate on tax relief and the state’s fiscal direction builds on recent talk covered in TaxBuzz last week about proposals to phase out Georgia’s income tax and eliminate local homestead property taxes, signaling a high-stakes tax policy moment in the state ahead of the 2026 elections.

Which headline this week most interests you?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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