Welch: Higher state taxes are trying to tell you something

By Todd Welch / Herald Columnist

As Washingtonians prepare for summer road trips and family gatherings, two new financial burdens are set to take effect on July 1: a gas tax increase and an expansion of the sales tax base.

These decisions, pushed through by the state Legislature, reflect a growing disconnect in Olympia. Instead of addressing the real needs of families and businesses, our elected officials continue to prioritize unchecked spending. It’s time to ask ourselves a tough question: Is this the leadership we deserve?

Let’s start with the gas tax. On July 1, Washington’s gas tax will jump by six cents, bringing the total to nearly 56 cents per gallon, the third highest in the nation. And yet, this increase is happening in a state that hosts five oil refineries and ranks fifth in national refining capacity. We produce fuel here, but we’re paying more at the pump than all but California and Hawaii. In fact, as of June 20, AAA reports Washington’s average gas price — $4.45 a gallon as of June 24 — is $1.23 higher than the national average, the only state where gas prices are higher today than they were this time last year.

The burden doesn’t stop at the pump. Families already squeezed by rising costs for groceries, housing and childcare will see more strain. Contractors, small delivery businesses and farmers will face higher fuel costs, and those costs will be passed down to consumers. To make matters worse, diesel prices are rising even faster, which means the price of nearly every good and service is likely to increase too.

But that’s not all. Also on July 1, the Legislature’s expasion of the sales tax base goes into effect; not by increasing the tax rate, but by taxing more services. That means everyday transactions like haircuts, car repairs and gym memberships will cost more. This tactic might be quieter, but it hits just as hard, especially for working families and local service providers who already operate on thin margins. It risks driving businesses out of Washington and further shrinking our economic choices.

What makes all of this especially frustrating is that these tax increases are entirely unnecessary. Washington’s revenue growth has been nothing short of explosive. Even during the pandemic, in 2020, the state collected $40 billion. That jumped to $44.2 billion in 2021, $52 billion in 2022, $57 billion in 2023, and now an estimated $66.5 billion in 2024, with even more growth projected.

With that kind of money coming in, why are taxes still going up? Olympia is spending beyond its means. Instead of focusing on the core responsibilities of government — safe roads, strong schools and reliable public safety — lawmakers are directing funds toward projects and programs that often lack accountability or measurable public benefit. Meanwhile, every day, Washingtonians are left footing the bill.

Consider this: Between federal, state, and local taxes, you’re already handing over 35 percent to 45 percent of your income. That’s a massive chunk of your paycheck; and it’s only getting worse. High taxes not only affect your wallet, but they also discourage businesses from expanding here and make it harder for young families to establish roots. It’s becoming clear that some in Olympia believe they know better than you how to spend your hard-earned money.

This isn’t about finger-pointing; it’s about demanding better. We need leaders who respect taxpayers, rein in excessive spending, and focus on what truly matters to Washington families. That means supporting candidates who prioritize fiscal discipline, essential services and a business climate that invites — not repels — investment and innovation.

Voting for new leadership in Olympia isn’t just a political statement. It’s a chance to put more money back in your pocket, support local jobs and restore balance to a system that has drifted too far from its constituents. Washington has always been a state of opportunity. Let’s elect people who believe in preserving that opportunity for everyone.

It’s time to demand leadership that works for working families, not against them.

Todd Welch is a columnist for The Herald, addressing local and state issues. He lives in Everett.