From the CEO

There is economic news coming in from every corner of the nation and world: newspaper headlines about tariffs, business closure notices stuck to front doors, and nervous conversations about the future of our economy being had over kitchen tables, happy hours, and school pick-ups.

And we are seeing it here at home, too: 90% of Seattleites are concerned about a recession in the wake of the national economic policies and our ports are already seeing a drop in shipping traffic because of tariffs. In the city of Seattle, payroll expense tax, B&O tax and sales tax projections are down.

That’s why it is hard to believe that – against this backdrop – on Sunday lawmakers in Olympia approved the largest tax increase in state history on local businesses and passed major policies that will impact certain industries, including providing unemployment insurance for employees who are on strike.

I want to strongly encourage you to look into what bills passed and how they might affect you and your business. And if you’re not sure, reach out to us, and we’ll help.

Over the course of this legislative session, much has been said about who these taxes and policies are intended for, or who they targeted. But the reality is, you simply can’t enact this volume of tax and policy change on economic activity and believe it isn’t going to have a corresponding economic impact  – and be costly for everyone. These tax increases are estimated to cost a Washington family of four at least $2,000 per year, on average.

Now, our team in Olympia did great work this session, holding back the passage of bills including a statewide payroll expense tax, eliminating non-compete agreements, increasing the paid family and medical leave employer rate every two years, raising the state minimum wage to $25 per hour, and an AI developers bill with a private right of action. That volume alone was impressive!

And I am an eternal optimist, but I will be honest and say that things feel very challenging right now. We’d much rather be playing offense to help grow our economy and prosperity and work in partnership with government than be playing defense to maintain what we have and be at odds with lawmakers.

So, my message to you, our members, is to buckle up – because I think we are in for a bit of a bumpy ride. But know this: your Seattle Metro Chamber isn’t going anywhere. We worked fiercely to protect your businesses during this legislative session – from co-chairing Gov. Bob Ferguson’s Budget and Government Efficiency group with former Democratic State Sen. Mark Mullet, to using our voice on your behalf to generate dozens of headlines and media reports alongside our partners at AWB, Bellevue Chamber and Washington Roundtable to tell your stories.

And we will keep at it.

Onward, Rachel

Rachel Smith (she/her/hers)
President & CEO
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