Washington Governor Proposes Wealth and Business Taxes to Address Budget Shortfall

Outgoing Governor Jay Inslee unveils tax plan targeting the ultra-wealthy and large businesses to close a projected $16 billion deficit without cutting key state services.

Governor Jay Inslee's final budget proposal includes a 1% annual tax on residents with worldwide wealth exceeding $100 million, projected to raise $10.3 billion over four years.
The proposed wealth tax would impact approximately 3,400 of Washington's richest residents, including high-profile figures like Bill Gates.
Inslee also calls for a temporary 20% increase in the business and occupation (B&O) tax for service-related businesses earning over $1 million annually, followed by a permanent 10% hike starting in 2027.
The tax measures aim to address a projected four-year budget shortfall of up to $16 billion while avoiding significant cuts to education, mental health services, and public safety programs.
Critics, including Republican lawmakers, argue that the shortfall stems from overspending rather than revenue issues, warning that higher taxes could increase living costs and deter business growth.