By Todd Welch / Herald Columnist
As Washington state’s 2025 legislative session kicks off, lawmakers face a daunting $12 billion budget deficit.
Outgoing Gov. Jay Inslee’s proposed solution? A wealth tax targeting individuals with assets exceeding $100 million. Inslee frames the measure as a remedy for the state’s fiscal woes, but critics argue it’s little more than a political maneuver to distract from years of mismanagement. Rather than addressing over-spending, this policy shifts the burden onto those who have achieved financial success, painting them as scapegoats for the state’s budget crisis.
The economic risks of a wealth tax are well-documented. High net-worth individuals are likely to adopt tax-avoidance strategies or relocate to more tax-friendly states, as did Amazon founder Jeff Bezos with his move to Florida in 2023. Compounding the issue, Inslee has suggested increasing the state’s business and occupation (B&O) tax, a move that would disproportionately impact small businesses already struggling to stay afloat in a challenging economic environment.
While these tax proposals may struggle to gain traction in the Legislature, tax increases are clearly on the agenda for many Democratic lawmakers. A leaked email from state Sen. Noel Frame, D-Seattle, at a Democratic caucus retreat underscores this. The email included a presentation on how to pitch tax increases to constituents, with suggestions such as lifting the 1 percent cap on annual local government property tax hikes, implementing an excise tax on guns and ammunition sales, and imposing a sales tax on self-storage rentals. Most strikingly, Frame’s rallying cry to “spread the tax policy love around” reveals a troubling approach to addressing the deficit.
Frame’s advice to avoid phrases like “tax the rich” or “pay their fair share” is telling. Instead, she advocates framing the wealthy as delinquent taxpayers who need to “pay what they owe,” effectively vilifying successful individuals to justify new taxes. This rhetoric distracts from the core issue: Washington doesn’t have a revenue problem; it has a spending problem.
Washington voters, particularly in Snohomish County, have consistently rejected higher taxes at the ballot box. Local officials should take note. Yet some, like Snohomish County Councilman Strom Peterson — also a state representative — appear to misinterpret these results, suggesting that voters’ rejection of statewide initiatives signals support for more taxes. This interpretation defies common sense and undermines the clear message from voters who believe they are already overtaxed.
Rather than turning to new taxes as a default solution, legislators must prioritize fiscal responsibility. Eliminating wasteful spending, improving government efficiency, and resisting the demands of special interest groups would go a long way toward restoring economic stability without jeopardizing the state’s future.
Washington doesn’t need more taxes. It needs leaders willing to address the root causes of its budgetary challenges.
Todd Welch is a new local columnist for The Herald. He lives in Everett.
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