The Washington Roundtable, Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Greater Spokane Inc. issued the following joint statement in response to an income tax measure introduced in the Legislature today:
“As leaders representing employers of all sizes across Washington state, we are carefully reviewing the income tax proposal introduced today. Though framed as a personal income tax, this legislation has clear and significant implications for business activity. We appreciate its complexity and are committed to thoroughly evaluating its details and assessing its full impact on Washington’s economy.
Like all tax proposals, we will evaluate it through the lens of our shared priorities: its impact on affordability for families and businesses, whether it delivers results that Washingtonians can see and feel in their communities, and the extent to which it supports long-term budget sustainability and state economic competitiveness. This bill now gives us a foundation for further discussion, which we are committed to being a part of.”
Statements from Business Leaders:
“Proposing a personal income tax is a major economic move for our state – one that will have consequences – and it’s not something that we, or anyone in Washington, is taking lightly.
As this proposal has been taking shape, we’ve been focused on three things: getting clarity around the policy’s intent, addressing technical concerns with the mechanics of a new income tax, and seeing the inclusion of policy provisions that benefit Washington’s employers and communities. This would necessarily include meaningful business tax reductions following the largest tax increases in state history last year, as well as budget sustainability directives and measures to ensure a high standard is met in providing important government services. From the first conversations to now, we have seen some progress in all three of these areas, which we appreciate.
But let’s be clear: it is a beginning, not an endpoint, and there’s still a lot of work to do. We not only know the bill will change; we expect it to, and with more of the business community concerns addressed and priority provisions included. If the Legislature is going to advance a proposal of this magnitude, it must be the product of serious discussion, collaboration, and a shared commitment to getting it right.” – Rachel Smith, President, Washington Roundtable
“We appreciate legislator sensitivity to the significant impacts an income tax would have on Washington. However, several structural issues in this proposal need closer review, including the treatment of pass-through entities, charitable deductions, a potential marriage penalty, and interactions with other state tax policies.
Beyond that, policymakers must rethink spending and our state’s overall economic health. While our state government has added nearly 10,000 employees since the pandemic, private sector job growth has flattened and begun to decline. As The Seattle Times reported this week, “Seattle has been overwhelmed with job cuts since the start of the year.” The economic momentum that we have taken for granted for decades is now coming to a halt.
Higher taxes to support the already record-breaking levels of government growth will only slam the brakes harder.” – Joe Fain, President & CEO, Bellevue Chamber of Commerce
“The lack of a state income tax has been one of Washington’s relatively few competitive advantages over other states and regions, so we want to be extremely thoughtful about making any changes that might hurt the economy, especially at a time when so many small- and medium-sized businesses are feeling the strain of a growing tax bill. We are deeply concerned about the fragility of the economy, the growth in state spending over the last decade, and how expensive Washington has become for families and employers. As we review the legislation, we’re especially focused on learning how it could affect business income for small- and medium-sized businesses that are structured as S-corporations. We hope lawmakers will look for ways to grow the economy, not tax it more.” – Kris Johnson, president, Association of Washington Business
“Washington’s economy is an ecosystem, complex, interdependent, and more fragile than we sometimes acknowledge. A proposal of this scale represents a major shift in tax policy and requires accountability for how new resources are spent and the broader impacts that follow. Tax decisions shape competitiveness, influence investment, and affect the businesses and workers who feel those consequences first.
We appreciate being part of this conversation at a time of real economic uncertainty, and we are committed to engaging thoughtfully, examining the full ripple effects, and ensuring Washington continues to be a place where opportunity can grow for generations to come.” – Joe Nguyen, President & CEO, Seattle Metropolitan Chamber of Commerce
“In Eastern Washington, we see firsthand how closely affordability, competitiveness, and job creation are linked, especially for small and mid-sized employers. With new taxes and new regulations we are seeing businesses and capital that are considering moving to states that are more focused on economic development. So, any proposal of this scale must be carefully evaluated for its real-world impacts across the entire state and shaped through thoughtful dialogue that keeps Washington economically competitive.
We look forward to working collaboratively with lawmakers to understand the full regional impacts and ensure any policy changes strengthen Washington’s competitiveness and economic opportunity in every corner of the state.” – Alisha Benson, CEO, Greater Spokane Inc.
Contacts:
- Sara Garrettson, Washington Roundtable (206) 372-4800
- Tim Punke, Monument Advocacy (206) 755-0043