After $12.5B in New Taxes, Lawmakers Are Already Back for Another Bite

Washington’s budget crisis didn’t come out of nowhere. After more than a decade of explosive spending growth — the kind that consistently outpaced population and inflation — lawmakers in Olympia are now stunned to discover that revenue is falling short of expectations. The surprise is hard to take seriously. When government grows this fast for this long, the math always catches up.

What makes this moment even more absurd is that it comes less than a year after lawmakers passed $12.5 billion in new taxes, the largest tax-hike package in Washington state history. That was supposed to “stabilize” the budget and “protect essential services.” Instead, Washington is staring at a $4.3 billion shortfall, proving that even record-breaking tax increases can’t keep pace with runaway spending.

And rather than treat this as a wake-up call, some lawmakers want to pile on even more. Rep. Shaun Scott (D-Seattle) has introduced a new 5% payroll tax — a direct hit on workers, employers, and the small businesses already operating on razor-thin margins.

Brandi Kruse attended Scott’s press conference about the payroll tax, which Sean Reynolds from News For Reasonable People covered with additional commentary of his own, which you can see here:

Suffice to say, a tax like this would reduce take-home pay, force businesses to cut jobs or leave the state, and accelerate the troubling trend of Washington bleeding taxpayers to friendlier states. It’s the worst possible idea at the worst possible moment.

Meanwhile, Gov. Bob Ferguson is now promising a budget based on cuts rather than new taxes. That would be welcome news — if we hadn’t heard it before. A year ago, he made almost identical statements, only to turn around months later and sign the $12.5 billion tax package into law exactly as Democratic majorities sent it to him. Taxpayers have every reason to question whether “no new taxes” actually means no new taxes.

At the heart of all this is a simple moral issue. Lawmakers are already taking more from Washington families and businesses than at any point in state history. They raised taxes by a record amount last year. They expanded state spending to unprecedented levels, with massive increases in state employee salaries and special appropriations (i.e. grants, with little accountability for results). They even somehow managed to reduce funding for health and children’s services.

Reminder: The budget passed by legislative Democrats and signed into law by Gov. Ferguson granted generous pay raises to bureaucrats and elected officials while enacting the largest Medicaid cuts in state history. pic.twitter.com/OQUfuBhMAf

— WA House Republicans (@WaHouseGOP) November 25, 2025

And now, with the budget strained by their own choices, some of them think the answer is to reach even deeper into taxpayers’ pockets.

It’s wrong. Families are paying more for food, gas, utilities, and housing. Businesses are fighting to stay afloat. Lawmakers should not expect taxpayers to sacrifice again so that government doesn’t have to. This shortfall must be fixed by spending less, not by raising taxes yet again.

Washington doesn’t have a revenue problem. It has a discipline problem. And taxpayers have had enough.

Photo: Center Square Washington