After new proposals, Chamber doubles down on opposition to statewide payroll tax

Ahead of Rep. Shaun Scott’s press conference this afternoon regarding the most recently proposed statewide payroll tax, the Bellevue Chamber wanted to reiterate its stance on the proposal, and address some new, startling aspects.

The Bellevue Chamber of Commerce is voicing strong opposition to a new statewide payroll tax proposal that would exempt employers already paying Seattle's local JumpStart payroll tax. The proposal also guarantees to increase costs on working families, exacerbating Washington’s already historic affordability crisis.

Under the proposal, companies that pay Seattle's JumpStart tax would not pay the new state tax. Employers in every other city, however, would be required to remit the tax to the state.

"In practical terms, this means taxpayers and employers from every corner of Washington would be directly subsidizing the City of Seattle's budget," said Joe Fain, President & CEO of the Bellevue Chamber. "Seattle would keep the revenue it raises locally, while payroll tax dollars from businesses in Bellevue and communities across the state would be turned over to the state. Despite not paying the tax Seattle would still receive the benefit.”

Supporters of the measure have argued that exempting JumpStart payers would prevent Seattle-based businesses from being at a competitive disadvantage.

"It is telling that Seattle legislators openly acknowledge that their tax policies are driving jobs and investment out of the city," Fain said. "But the answer is not to export Seattle's problem to the rest of Washington. Asking employers in Bellevue, Bremerton, Spokane, and every other community to pay more so that Seattle can receive preferential treatment is unjust.”

Recent analysis by the Tax Foundation shows Washington is already one of the least competitive states in the nation, falling to 45th in the recent ranking. The Washington State Economist has also projected flat employment growth in Washington over the next several years. Moody’s has also rated Washington as one of a handful of states that is in high risk of economic recession.

"Washington needs a tax system that supports growth and opportunity in every community, not one that privileges a single jurisdiction at the expense of all others ... The Bellevue Chamber stands ready to work with legislators on solutions that fund essential services while protecting jobs and strengthening our statewide economy."