WA Democratic Lawmakers Prepare to Quickly Advance Largest Tax Hikes in State History
Most everyone at one point or another has been faced with personal financial challenge where money is tight, and you have to prioritize your spending. It’s what any responsible person does, dealing with what’s in your direct control. Cut back on eating out and entertainment. Cancel a subscription you can live without. Focus on basic necessities. After doing all that, you then may go ask for a raise, but that involves a lot that is out of your control.
But not Legislative Democrats. Washington state is facing a multi-billion budget shortfall, but instead of making responsible choices, Democrats in Olympia are using it as an excuse to push through the largest tax increases in state history. They’re banking on yet another raise, without any of the disciplined cost cutting.
Their recently announced tax packages by the House and Senate Democrats, expected to raise $17 billion in new tax revenue, would raise property taxes, impose a statewide payroll tax, expand Washington’s wealth tax experiment, and increase business taxes—all while ignoring a Senate Republican budget that balances the books, still expand government spending without raising taxes. If passed, the Democrat tax package would add two new taxes and expand others. It would be the biggest tax increases in state history, affecting homeowners, businesses, and workers alike.
Several taxes are being heard in a committee hearing Monday, March 31, at 4 pm. Here’s what’s being proposed:
- A property tax increase that grows every year
SB 5798 removes Washington’s 1% cap on annual property tax increases and replaces it with a formula tied to inflation and population growth. If this formula had been in place last year, property taxes would have risen by 6.74%—in just one year. This means homeowners will pay thousands more over time, and renters will see higher housing costs as landlords pass down tax hikes. Senator Chris Gildon (R-Puyallup) warned, “It would fall directly on the backs of families who are far from wealthy and also become a pass-through cost to renters across our state.” - A statewide payroll tax that’s been tried and failed elsewhere
SB 5796 creates a new tax on jobs, modeled after Seattle’s disastrous JumpStart Payroll Tax. This tax hits employees making $176,000+ per year, but the employer pays the tax, essentially functioning as a hidden income tax. Our state’s economy is reliant on a healthy and growing tech industry that pays many of its workers over that threshold. When those taxes become too burdensome, we fully expect those companies to begin investing out of state. When that tax base dwindles, and this tax doesn’t generate enough money as has happened in other places, lawmakers will surely expand this tax to the middle class. - A new tax on investment that pushes jobs out of Washington
SB 5797 expands Washington’s property tax to include stocks, bonds, and intangible assets—a policy that has failed everywhere it has been tried. Republican State Senate leader, John Braun, puts it in perspective, “In truth, Senate Bill 5797 is a new kind of property tax — but instead of taxing people for owning land, it would tax people for simply owning a certain volume of stocks, bonds and other intangible assets.” - Raising Taxes on Businesses
SB 5494 removes more than $1 billion in tax exemptions across virtually all industries in Washington, effectively making it a task hike on businesses in tech, energy, health care, real estate, nonprofit, and agriculture industries.
This is all to fund the state budget shortfall. Meanwhile, lawmakers somehow found room in their House budget for programs like this: $300,000 in grants to teach preschoolers how to ice skate in the name of “equity.” See for yourself:
“$150,000 of the general fund—state appropriation for fiscal year 2024 and $150,000 of the general fund—state appropriation for fiscal year 2025 are provided solely for a grant to a Seattle-based nonprofit that provides holistic services to help refugee and immigrant women. Funds must be used to expand an existing program that increases equity in ice skating and hockey by providing skate lessons to preschoolers from diverse and low-income families.”
Let’s be clear—if lawmakers have extra money for hockey lessons, they do not need to take more from working families and homeowners. It’s time to get our state’s priorities in check, something Senate Republicans have tried to do with their alternative budget proposal, The “$ave Washington” budget. This budget fully funds education, transportation, and public safety, balances the budget without any tax increases, and keeps Washington competitive for businesses and workers.
There’s a lot things on the priority list ahead of ice-skating and hockey. They’ve already taken more and more money for education, public safety, infrastructure, cleaning up the environment, addressing homelessness, and affordability. Are there any of those areas that have actually improved over the last decade? And now they want more and for the same programs?
Polling shows Washingtonians overwhelmingly oppose tax hikes, yet Democrats are ignoring them. With inflation already squeezing household budgets, families cannot afford higher property taxes, higher business costs, and more government waste. Enough is enough. The budget CAN be balanced without tax increases—but only if lawmakers hear from you.
Tell your lawmakers: NO NEW TAXES!