Sen. Noel Frame speaks at a rally on March. 17, 2025 in support of progressive tax revenue as a strategy to prevent cuts to critical programs across the state. (Photo by Jacquelyn Jimenez Romero/Washington State Standard)
Democrat lawmakers are proposing a sweeping $20 billion tax package that targets nearly every aspect of the economy, business and occupation taxes, property taxes, payroll taxes, cargo movement, and even wealthy individuals’ assets. These measures, introduced in the House and Senate, aim to address budget deficits but come at a steep cost to consumers and businesses alike.
If enacted, this tax package would drive up consumer costs, crush retailers already operating on razor-thin margins, and jeopardize Washington’s economic competitiveness. Retailers, burdened by high payroll and overhead costs, cannot absorb these additional expenses without drastic consequences.
WR opposes these taxes and will fight for exemptions for retail and wholesale activities, as well as protections for cargo movement in the supply chain. Historically, retailing and wholesaling B&O tax rates have been kept low to support these critical industries. Without safeguards, retailers will be forced to cut staff, reduce hours, automate, or even shutter their doors.
Hearings are scheduled this week in the Senate Ways and Means Committee and the House Appropriations Committee. However, committee votes are unlikely until lawmakers finalize a budget agreement and determine the total tax revenue required. The stakes for Washington’s economy couldn’t be higher.
