Dozens of major corporations have warned Washington State’s Democrat-led legislature and Governor Bob Ferguson that proposed tax increases threaten the state’s economic future. The letter—signed by executives from Amazon, Microsoft, Costco, Alaska Airlines, Nordstrom, Zillow, and even the Seattle Mariners—blasts the state’s unprecedented spending and tax agenda.
The companies raised alarm over the House and Senate budget plans, which propose the largest tax hikes in Washington history to fill a $15 billion deficit. That shortfall stems from unchecked spending growth, with the state’s operating budget more than doubling in the past decade and rising 37 percent in just four years—outpacing population, inflation, and income growth.
“These proposals would result in the largest tax increases in state history, perpetuating a dangerous trend of unsustainable spending growth,” the letter stated.
Despite Gov. Ferguson pledging to veto any wealth tax proposals, corporate leaders remain concerned. The letter notes that even without new taxes, existing revenue is projected to grow 6.8 percent in the 2025-2027 biennium and 7.7 percent in the following cycle. Businesses argue the additional proposed taxes—which would grow revenue by nearly 15 percent—are unnecessary and harmful.
The letter warned that escalating costs will push jobs out of Washington. Amazon previously moved jobs out of Seattle following the passage of the “jumpstart” payroll tax. That tax has already fallen $47 million short of projections and is partly to blame for Seattle’s staggering $250 million budget gap.
Microsoft President Brad Smith noted the global consequences of similar policies. “Thirteen countries across Europe adopted precisely this type of tax in the 1980s, and almost all of them ended up abolishing it because they all had the same experience. This type of tax across Europe destroyed jobs.”
Smith also highlighted a shift in Amazon’s hiring, with 10,000 fewer jobs in Seattle and 25,000 added in Bellevue. He warned, “The economics would make virtually inevitable the transfer of some jobs out of Washington State to Idaho, to British Columbia, to other states in the United States.”
The letter was co-signed by the Seattle and Bellevue Chambers of Commerce, the Association of Washington Business, and the Washington Roundtable, underscoring broad concern across the state’s economic leadership.
