This bill aims to provide tax relief to Washington residents by reducing the state sales tax in the event that an income tax or a tax on individual earnings is imposed. The legislature recognizes the financial struggles faced by many families due to rising living costs and believes that meaningful tax relief is essential for maintaining financial stability. The bill argues against the introduction of a broad-based income tax, stating that it would negatively impact the state's economy, drive businesses away, and burden families with an unpredictable tax.

To implement this tax relief, the bill introduces a new section to chapter 82.08 RCW, which mandates that if the legislature enacts an income tax or a tax on individual earnings, the Department of Revenue must reduce the state retail sales and use tax rate accordingly. This reduction will be proportional to the projected revenue increase from the new tax, ensuring that the overall tax burden on residents does not increase.