Democratic state senators are eyeing an income tax on millionaires as they seek to overcome Washington’s persisting budget shortfall.

Individuals and households would pay a 9.9% tax on adjusted gross income above $1 million, and get credit for state capital gains tax payments, according to those familiar with the broad outline. It could generate an estimated $3 billion from a projected 20,000 households subject to the tax.

The Senate Democratic Caucus discussed the politically explosive idea, which has been repeatedly rejected by voters and the state Supreme Court, during a retreat earlier this month. They also talked about other means of raising revenues to avert deficits in the current and next budget.

Senate Majority Leader Jamie Pedersen, D-Seattle, said Wednesday it’s too early t

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