Joint Statement from Business Leaders on the Conclusion of the 2026 Legislative Session

The Bellevue Chamber, Washington Roundtable, Association of Washington Business, Seattle Metropolitan Chamber of Commerce, and Greater Spokane Inc. issued the following statement at the conclusion of the 2026 legislative session:

“While tax talk took up most of the oxygen in Olympia this session, we didn’t lose focus on making progress on issues important to both employers and Washington residents.

First, the final supplemental transportation budget invests $1.2 billion more in critical infrastructure this biennium, and an additional $1.3 billion in maintenance and preservation over the next six years. We appreciate the leadership of Governor Ferguson and legislative leaders from both parties.

Lawmakers also took another step in addressing the state’s housing shortage by allowing housing to be built on underutilized commercially zoned parcels in urban areas. There is no silver bullet to address our housing crisis, and we must continue chipping away at the policies and practices that hold back progress. This policy shift is a step in the right direction.

Lawmakers also declined to advance several proposals that would have increased the already high tax burden on employers, including the Apple Health employer assessment (SB 6173), expansion of the capital gains tax to small business stock (SB 6229), a health insurance premium tax increase (HB 2626), uncapping the advanced computing surcharge (HB 2098), a wealth tax on intangible assets (ESB 5797), and a payroll expense tax on high-earning jobs (HB 2100). They also scaled back parts of last year’s historic tax increases that raised prices on everyday products and harmed Washington’s competitiveness.

Washington still faces growing budget pressures, with more deficits projected in the coming years. And, Washington ranks among the bottom states for both tax competitiveness and overall environment for business. That needs to change. We look forward to working with lawmakers on strategies that will grow the economy, support long-term budget sustainability, and help Washington break out of the cycle of perennial deficits.”

From our President & CEO, Joe Fain:

“It was a difficult session that marked seismic change for Washington’s economy. While this kicks off a period of uncertainty, lawmakers made the right call by rejecting several proposals that would have piled even more taxes onto employers already navigating one of the most expensive states in the country to do business.

We also appreciate the leadership of Senator Emily Alvarado and others on the Commercial Corridors legislation (SB 6026) that should help unlock housing in more parts of our growing cities.

But — Washington still faces a deeper problem: Recurring deficits despite years of historic tax increases. When tax hikes become routine, they stop being solutions and start becoming symptoms. The result is a state that grows more expensive, less competitive, and harder to afford for the very people policymakers say they want to help.”

Quotes from Business Leaders:

Rachel Smith, President, Washington Roundtable: 

“We appreciate the progress made this session on transportation and housing — two issues that are critical to Washington’s economic health and quality of life. At the same time, becoming more of an outlier on tax policy is rarely a good thing. Washington can’t have the only B&O tax in the nation along with some of the highest capital gains, estate, and income tax rates in the country and still expect to be as competitive as we need to be for the investment, jobs, and talent that we all want for our communities. More work is needed in the years ahead — both on tax policy and budget sustainability — to balance government revenue needs with business and consumer costs.”

Joe Nguyen, President & CEO, Seattle Metropolitan Chamber of Commerce:

“As Washington’s legislative session comes to a close, transparency and outcomes should remain at the center of how we evaluate the policies adopted this year. Many employers feel they are being asked to shoulder more responsibility at a time when it’s already challenging to invest, hire, and support their communities. Regardless of where people stand on the legislation passed this session, the reality is that systemic changes are now part of the landscape. The work ahead is making sure those changes deliver real results and supporting businesses, workers, and communities as partners in building a thriving and resilient economy.”

Kris Johnson, President, Association of Washington Business:

“This will no doubt be remembered as the year Washington adopted an income tax, a seismic shift in tax policy that abandons one of our most important competitive advantages and makes it harder for small- and medium-sized businesses to start here, to grow here and even to survive here. As disappointing as it was, there were some bright spots worth noting, including passage of SB 6026, a bill that makes important progress addressing the state’s housing shortage by making it easier to build housing on vacant commercial property. Lawmakers also adopted a transportation budget that makes needed investments not only in critical new infrastructure but also vitally important maintenance and preservation. Looking ahead, we continue to call on lawmakers to stop overspending and create a plan to grow our economy.”

Alisha Benson, CEO, Greater Spokane Inc.: 

“Communities across Washington, including Spokane, are feeling the impact of rising costs that make it increasingly difficult for employers and families to make ends meet. Washington’s economic future depends on policies that support growth, affordability, fiscal responsibility, and a tax environment that keeps our state competitive. We appreciate progress this session on investments in transportation and housing supply, but more work remains to ensure Washington remains a place where businesses can invest, grow, and create opportunity.”