The new version of Senate Bill 6346 keeps in place the main thrust of the proposal: a 9.9% tax on annual earnings above $1 million, starting in 2028. That would bring in about $3.5 billion a year, affecting about 30,000 taxpayers, according to legislative staff estimates.

The amended bill boosts a tax break for small businesses, exempting firms with gross revenues of $300,000 or less from the state business and occupation tax, and giving some relief for businesses grossing up to $600,000.

Senate Majority Leader Jaime Pedersen, D-Seattle, the bill’s chief sponsor, said that would exempt more than 70% of small businesses from the state B&O tax.

The revised bill also doubles the charitable deduction to $100,000 and adds a deduction for commercial fishing firms that set aside money to repair or replace boats.

Democrats voted to move the bill ahead for a possible vote next week by the full Senate, while stressing that further changes may be considered to add tax breaks for employers and families.