Chamber, fellow business leaders testify against HB 2100 in Olympia

The Bellevue Chamber, Washington Roundtable, Association of Washington Business, Seattle Metropolitan Chamber of Commerce, and Greater Spokane Inc. issued the following joint statement yesterday opposing HB 2100, legislation that would expand a Seattle-style payroll tax statewide.

Washingtonians across the state are facing an affordability crisis. Families are struggling with rising housing costs, groceries, childcare, utilities, and uncertainty in the job market. Employers of all sizes are facing the same pressures, compounded by a growing tax burden that makes it harder to hire, expand, or even keep jobs in Washington.

HB 2100 would make that crisis worse.

Modeled after Seattle’s JumpStart payroll tax, HB 2100 is a tax on jobs, applying to employers with as few as 20 employees. This approach raises costs on hiring and wages at the exact moment when affordability, job growth, and business survivability should be the Legislature’s top priorities.

Experience shows what happens when jobs are taxed. Seattle’s payroll tax has resulted in rising commercial vacancy rates, slower job growth, and employers relocating to more competitive cities like Bellevue, where economic activity is stronger, and elected officials work to support job creators. Expanding Seattle’s failed policies statewide risks exporting Washington jobs to more competitive states.

As lawmakers consider HB 2100 and other tax proposals, our priorities remain clear:

• Affordability must be prioritized. New taxes and tax increases need to be balanced with the costs they raise for families, workers, and consumers.
• Results and accountability matter. Despite state spending increases every year for the last decade, and the largest tax increase in state history last session, outcomes on voter priorities — like education, housing, and affordability — have continued to decline.
• Budget sustainability is a must. The state cannot continue to lurch from one multibillion-dollar budget crisis to the next.
• Economic competitiveness matters. Policies that discourage job creation and investment not only undermine long-term fiscal stability for the state, but shrink the tax base locally, regionally, and statewide.

Eight in 10 voters are already concerned about their own personal financial situation and are concerned about the availability of good-paying jobs for working families. We need better outcomes that people can see and feel in their communities.

We urge lawmakers to reject HB 2100. We stand ready to partner with legislators on solutions that prioritize affordability, accountability, and economic growth.

Quotes from Business Leaders:

Joe Fain, President & CEO, Bellevue Chamber:

“Since Seattle adopted their “jump start” payroll tax, jobs in Bellevue have grown by over 4,000 positions while Seattle has lost over 5,000. Replicating this experiment statewide will only benefit the economies of Idaho and Arizona. The provision that exempts Seattle essentially forces taxpayers in Bellingham and Vancouver to subsidize Seattle’s city budget. The state’s own economist warns that private sector job growth was negative in 2025 and is optimistically projected to be flat in the years ahead. Throwing the gasoline of a new payroll tax on the state’s five-alarm-fire jobs situation would be an unmitigated disaster.”

Rachel Smith, President, Washington Roundtable:

“This bill is a tax on good paying jobs – the kind of jobs that allow people to take care of their families, contribute to their communities, and pay the taxes that fund government services. It is a tax on jobs at a time when employers are already absorbing $9 billion in new taxes from last legislative session. And it is a tax proposal heavy on rhetoric, calling employer concerns ‘exploitation, propaganda, and hostage-taking,’ but light on specifics and with no plan beyond a catchy title. We urge you to oppose this bill because, I worked in government for 15 years, and I know we can do better.” 

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

“The data is clear; small businesses in Seattle and surrounding communities are fighting to survive. This bill would push more of them closer to the edge. As leaders, we have a responsibility to protect jobs and livelihoods in our city and across our state. We oppose this bill on behalf of the voters and stakeholders who keep Washington’s economy moving, and the workers, families, and employers struggling to keep up with rising costs. Simply put, HB 2100 is another barrier that threatens our ability to keep businesses open, competitive, and jobs rooted in Seattle and Washington state. We urge you to oppose this bill because the cost of your inaction is more jobs lost, businesses shuttered, and residents forced to leave the region they call home.”

Kris Johnson, President, Association of Washington Business:

“Washington employers are already struggling with the high cost of living and doing business here, and this bill would be another step in the wrong direction. If it passed, it would add to a growing pessimism about the direction of the state’s business climate, especially among small and medium-sized employers. Even holding a debate about it sends the wrong message to employers who are thinking about investing here. Are we trying to encourage good paying jobs or penalize them?”

Alisha Benson, Chief Executive Officer, Greater Spokane, Inc.:

“Washington families and businesses depend on stable, good paying jobs to strengthen our economy, drive growth, and keep border counties like Spokane competitive with neighboring states. During a statewide affordability crisis, policies like HB 2100 only serve to increase costs for employers and working families while undermining long term economic health and regional competitiveness. Greater Spokane Inc. urges lawmakers to reject this bill and instead advance policies that strengthen economic stability and open the door to new opportunities, not close it.”

Bryan Shull, Owner, Trap Door Brewing, Vancouver

“Washington has crossed the point where higher taxes stop generating growth and start driving it away. I operate multiple businesses in this state and refuse to incorporate any other here because lawmakers have taken too much on every front. Between payroll taxes, business taxes, and rising costs, it’s become harder to invest, harder to hire, and harder to justify growing in Washington. Policies like this don’t create opportunity—they push it elsewhere.”