Yet Another New Tax Bill For WA State

What would you think if your favorite local lunch spot started charging the best dressed customers extra for pizza and then giving away free meals to others? It's not a rhetorical question - Washington state lawmakers are moving to tax the richest companies (and the richest workers) to help pay for things the federal government may not pay for anymore. It’s got everyone from politicians to CEOs arguing like siblings over the last slice of pumpkin pie at Thanksgiving.

‍

Here are Five Fast Facts on the latest wealth tax in Washington State:

1. 🎯 Precision Targeting - The plan claims it would target only a handful of large employers - like Amazon and Microsoft - to pay a special payroll tax to raise money for the state. Lucky you, rich people, now pay up!

2. 🤔 Oh, By The Way... - The tax would also hit companies with more than 50 employees and payrolls over $7 million, which would be taxed for pay that’s above $125,000 per worker. Still feelin' rich now?

3. 💰 The Take - This new tax could bring in more than $2 billion each year, and be used to prop up programs that currently depend on federal funding. Good, because we were concerned there wouldn't be enough government to go around!

4. ⏰ Why Now? - The “Big Beautiful Bill” is pulling some federal dollars out of the state in an attempt to be fiscally responsible for a change. Washington state lawmakers say the state needs money for services like housing, education and healthcare. No word on whether other super critical things like climate change subsidies, DEI departments, or administrative/legislative perks would be impacted (wanna take a guess?).

5. 😡 Not Everyone’s Happy - Some city and business leaders say this tax will hurt jobs and make companies leave the state to avoid paying extra, or prevent businesses from coming into the state at all. Um, ya' think?

🔥Bottom line: And remember, this is after passing the biggest tax increase in history earlier this year! It sounds nice to have the biggest companies and wealthiest people "pay their fair share" but what happens if those companies and people leave? Not only do you lose the extra cash you thought you'd get from the new tax, but you also lose out on what they currently pay in today. And those companies and people who would be paying more are the same ones who can most easily move to a less expensive place. Do we really think this is a good idea? The old saying has been proven true over and over again: eventually, you run out of other people's money. And what do you do then? We may get to find out, unfortunately. Stay tuned, as this will be kicked around in the next legislative session starting in January!

‍

What do you think of this new tax?

‍

Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!

‍

BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!

‍