Business coalition responds to statewide tax proposals

In response to a 2025-27 revenue proposal put forward by Democratic leadership in the Washington State Senate, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Washington Roundtable issued this joint statement:

“Today’s revenue proposal is disappointing and, unfortunately, not surprising. For months, our organizations have urged lawmakers to craft a sustainable budget that corrects a well-worn pattern of overspending. However, it appears they are doing exactly what they have said they intended from the start: raise business taxes as high as they possibly can. The fact that Senate Democrats released a revenue proposal before outlining how they intend to spend the money—and that House Democrats intend to do the same—makes it clear that raising taxes was their focus. It is the height of irresponsibility.

What makes these proposals particularly reckless is that lawmakers are knowingly taking these actions against a backdrop of national policy instability and global tensions. Chaos and uncertainty—the biggest threat to a healthy business climate—are plaguing national economy. The possibility of a national recession and continued tariffs are threatening jobs while simultaneously increasing the cost of everyday goods. That state lawmakers are ignoring these realities, dismissing voter concerns about affordability, and disregarding employer warnings is alarming.

Let’s be clear—this budget shortfall is a self-inflicted crisis. State revenues are expected to continue growing over the next four years. This is not a revenue problem; it is a spending problem.  Over the last two budget cycles, state spending has grown 40%, far outpacing revenue growth. But, instead of taking corrective action, House and Senate Democrats are doubling down with tax increases.

We have been vocal in our support for the approach outlined by Governor Bob Ferguson last month, which focuses on identifying savings and efficiencies while protecting critical services. His leadership in prioritizing responsible budgeting stands in stark contrast to the tax proposals put forward today.

Washington’s long-term economic health depends on responsible leadership and a sustainable budget—one that ensures state spending is sustainable, protects essential services, and keeps our state an attractive and affordable place to live and work. We urge House and Senate Democrats to go back to the drawing board and develop a solution that prioritizes fiscal discipline over harmful new taxes."