The Daily Briefing – April 22, 2025

Washington Democrats: balancing the budget one backdoor tax hike at a time—preferably while you’re asleep.

Tax Hikes and Midnight Mischief: When Democrats Think You’re Not Watching

Because nothing says “fiscal responsibility” like jamming through tax hikes after midnight, Washington Democrats pulled an all-nighter to push three new tax bills aimed at papering over their $16 billion budget mess—a mess they helped create in the first place.

The now-gutted property tax bill? It was going to blow past the 1% cap and hike property taxes up to 3%—until Gov. Bob Ferguson and tens of thousands of angry residents forced Democrats to backpedal. Don’t worry though, it still includes levy changes that could mean more taxes anyway.

Then there’s House Bill 2077, which looks like a jealous swipe at Tesla and EVs, layering on taxes for zero-emission vehicles and their credits. Because apparently “going green” is only good until the state figures out how to tax it.

And finally, the pièce de résistance: a bill to jack up business and occupation taxes, plus fresh surcharges for “big” employers. Translation: if you’re successful in Washington, congratulations—Democrats just made you a bigger target.

Rep. Sharon Wylie, D-Vancouver, insists the only reason anyone’s upset is “partisanship.” Sure, Sharon—it’s not like people are mad because you’re taxing everything but the air we breathe. (Stay tuned. That’s probably next.) Read more at Center Square.

Democrats Eye Property Taxes Because They’re Harder to Flee Than Washington

If it doesn’t move, tax it—and if it can’t move, really tax it. That’s the guiding philosophy behind Democrats’ renewed obsession with gutting Washington’s 1% property tax cap, because apparently, budget mismanagement should always be solved by digging deeper into taxpayers’ pockets.

With a $15 billion state shortfall and Seattle projecting nearly $250 million in missing revenue of its own, Democrats are getting creative. By “creative,” we mean trotting out the usual suspects: wealth taxes, estate taxes, capital gains taxes, and now—yep—property tax hikes. The logic? You can’t pack up your house and move it to Idaho… yet.

UW economist Jacob Vigdor says property is “literally nailed down,” so it’s a more reliable revenue target than those pesky high earners and businesses that keep fleeing the state. He also thinks Washington’s regressive tax structure—heavy on sales tax—could be patched up by taxing landowners harder, especially in places like King County where the average property tax is already nearly $6,800 a year.

Senate Democrats even managed to squeak a bill through committee that would remove the 1% cap entirely. But it’s on shaky ground—just like House Bill 2049, which started off trying to blow the cap wide open, but has since been neutered down to “education funding.” Because when your tax plan backfires, just slap “for the kids” on it and hope no one notices.

Seattle’s also jumping into the tax-the-rich sweepstakes, with Councilmember Alexis Mercedes Rinck eyeing new “progressive” taxes to avoid cutting bloated programs and staff. Vigdor warns that local taxes are trickier, though, since people and businesses can just… leave. (And spoiler alert: they already are.) Read more at Center Square.

Welcome to Wash-a-DON’T: Where Businesses Go to Die (or Move to Idaho)

Turns out, Washington’s best export these days… is businesses. According to a new report from the Association of Washington Business, a full 12% of employers are planning to pack up and get out—up from 9% just a few months ago. And the hottest new destination? Idaho. Yes, Idaho. Because apparently lower taxes beat Puget Sound views when you’re trying to stay afloat.

Nearly two-thirds of the companies ready to flee say high taxes are the final straw. And they’re not alone in their frustration: 52% of all surveyed businesses say the tax burden is their top problem, and 43% want the state to stop trying to squeeze more money out of them and just cut taxes already.

Meanwhile, as KTTH’s Jason Rantz points out, Washington Democrats are doing their best impression of economic arsonists, floating $12 billion in new taxes to plug a $16 billion budget hole they helped create. Even Bob Ferguson blinked at the sticker shock and shot down the latest mega-tax scheme as “unsustainable.” When Amazon, Microsoft, and even the Mariners are telling you to chill out on taxes, maybe it’s time to listen… or not, because this is Washington. Read more at KTTH.

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