The Washington Roundtable, Association of Washington Business, Seattle Metropolitan Chamber of Commerce, Bellevue Chamber of Commerce, and Greater Spokane, Inc. today issued the following joint statement in response to the Washington state House of Representatives passing the first-ever state-wide income tax:
“With the House and Senate having passed the first ever income tax in Washington state – and Governor Ferguson having indicated he will sign it – the business community continues to urge state leaders to work towards a sustainably managed budget and a tax code that will ensure Washington’s competitiveness.”
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Rachel Smith, President, Washington Roundtable: “During this legislative session, we heard legislators talking more about issues the employer community has long been focused on: economic competitiveness, long-term budget sustainability, and a better tax code for Washington businesses and residents. Important provisions adopted this year begin to orient the state in that direction, including repeal of last year’s sales tax on services, reduction of the estate tax, and what we expect will be additional steps to support budget sustainability. As we have said before, we see this as the beginning – not the end – of real, earnest work to implement the changes Washington needs. It is imperative that this work happen quickly.”
Kris Johnson, President, Association of Washington Business: “By adopting a state income tax, Washington is giving up one of our primary competitive advantages we have had over other states and regions. We are already a high-cost state for families and employers, and this move — a seismic shift in our state’s tax structure — will unfortunately cause more small- and medium-sized business owners to seriously consider starting, growing or moving their business to other states with a more stable tax environment. Legislators are choosing to introduce an income tax despite many years of strong budget growth and more than $9 billion in new taxes adopted just last year. Because it does nothing to address the state’s short-term budget problems, we fully expect additional tax increases will be required again next year and for the foreseeable future, and that eventually the income tax will apply to all Washingtonians. We have to stop over-spending, have a renewed focus on creating jobs and develop a plan to grow our economy.”
Joe Nguyen, President and CEO, Seattle Metropolitan Chamber of Commerce: “A statewide income tax would be one of the biggest policy shifts Washington has considered in decades. If we’re going to take a step that significant, it should clearly improve affordability, strengthen our economic competitiveness, and deliver measurable benefits for families, workers, and employers.”
Joe Fain, President and CEO, Bellevue Chamber of Commerce: “Even after years of record breaking tax increases the state’s budget is still expected to be 7 to 10 billion dollars in deficit in the years ahead. When tax increases become annual events, they stop being solutions and start becoming symptoms. A just economy with an adequate public safety net simply can’t exist in a region that punishes innovation and pushes entrepreneurs elsewhere. We’ve already seen how tax policy in Seattle pushed jobs and investment to Bellevue. If Olympia continues down this path, the next moves won’t be across the lake — they’ll be across state lines.”
Alisha Benson, CEO, Greater Spokane, Inc.: “In Eastern Washington, we see firsthand how closely job creation, investment, and affordability are tied together. Small and mid-sized employers are already navigating rising costs, economic uncertainty — and the largest business tax increase in Washington state history passed just last year. New taxes only add more pressure. When businesses decide where to grow or invest, they look for stability, predictability, and a competitive overall tax environment. Policies that layer on additional taxes make Washington less competitive to neighboring states, at a time when employers have many choices about where to invest and create jobs. Our region’s economy depends on policies that encourage opportunity and growth, not ones that make it harder to do business here.”
