Letter: State pays more federal taxes than it receives in benefits

Published 1:30 am Monday, February 23, 2026

Washington state’s persistent budget shortfalls are worsened by a rarely discussed reality: We are a leading donor state to the federal government. USAFacts data shows residents and businesses contribute one of the highest net per-capita amounts — approximately $7,139 more in federal taxes paid than received in spending — among top national contributors. This drains billions annually, constraining resources for education, infrastructure, health care, and essential services while forcing greater reliance on state and local revenues.

Small businesses suffer the most, facing disproportionate impacts from underfunding, regressive measures, higher costs and limited support; without the resilience of larger firms.

Tariff pressures compound the problem. State analyses project up to $2.2 billion in general fund revenue losses by 2029, with 32,000 jobs at risk (especially in agriculture and aerospace), and rising costs squeezing small business margins further.

Policymakers and media focus on cuts, taxes, inflation and demand, yet this donor-state dynamic, the most critical variable, goes unaddressed. The silence from state and federal officials is deeply concerning, particularly amid intensifying tariff burdens. Advocating for fairer federal returns could ease pressures without additional hardships on residents and businesses.

Washingtonians deserve better.

Randall Aamot

Pasco