A new economic analysis suggests Washington Democrats’ record-breaking 2025 tax increases may be doing exactly what critics warned they would: slowing the state’s economy and shrinking workers’ paychecks.

In a new op-ed published by the Washington Policy Center’s Todd Myers, an independent study finds the largest tax increases in state history are projected to significantly drag down economic growth in the coming years.

The analysis, conducted by Washington-based research firm Infisum, estimates the tax hikes will reduce state economic growth by 0.5% of Washington’s GDP in 2026 while cutting wages by roughly $3.7 billion that same year.

And the damage doesn’t stop there.

By 2029, the study projects the economic hit will deepen to 1.2% of state GDP, with $8.5 billion in lost wages for Washington workers.

According to Myers, the biggest blow comes from two tax policies Democrats aggressively pushed last year: increases to the Business and Occupation (B&O) tax and the expansion of the state sales tax to more services. Those changes alone are expected to reduce wages for both skilled and unskilled workers by more than $2 billion in 2026, growing to nearly $6 billion by 2029.

All of this comes as Washington’s business climate has already been deteriorating for years. Myers notes that the Washington Policy Center’s “Report Card for Washington’s Future” shows the state falling from 6th best business tax climate in 2014 to 45th in the nation last year. Washington also now holds the dubious distinction of having the highest small-business failure rate in the country over the past five years.

Even lawmakers appear to be recognizing that some of their tax policies went too far. The legislature is now considering repealing last year’s death tax increase, which briefly made Washington’s estate tax the highest in the nation. Meanwhile, the proposed income-tax legislation would roll back portions of the B&O tax hikes they just passed.

But rather than learn from the damage, Democrats are already proposing billions more in new taxes in the current supplemental budget.

As Myers argues, the real problem is Olympia’s spending habits. Lawmakers have locked themselves into ever-growing budgets that require ever-larger tax increases to sustain them — creating a cycle where higher taxes slow the economy that generates the revenue they depend on.

Until state leaders adopt a spending plan that is actually sustainable, Washington’s economic outlook will likely remain stuck in the same pattern: bigger government, bigger taxes, and a shrinking competitive edge. Read more at the Washington Policy Center.

Washington Democrats are pushing ahead with another sweeping housing mandate, this time with House Bill 2266, which would effectively strip cities and counties of the ability to block certain homeless housing projects through local zoning.

The bill would require jurisdictions inside urban growth areas to allow what the state calls STEP housing — shelters, transitional housing, emergency housing, and permanent supportive housing — in a wide range of zones. In practice, that means transitional or supportive housing could be built anywhere residential housing or hotels are allowed, while emergency shelters could be placed in hotel zones.

In other words, local governments would have little say over where these projects land in their communities.

Democrats backing the bill argue it’s simply about increasing housing supply. The bill’s sponsor, Rep. Strom Peterson (D-Edmonds), says the policy will create a consistent statewide standard so developers know where they can build.

But critics say the measure ignores the real problems that have plagued Washington’s homelessness response for years.

Discovery Institute researcher Marsha Michaelis warned the policy risks creating more disorder without addressing the root causes of homelessness.

“This puts residents in real danger of increased crime and lawlessness and leaves the homeless housed but without the real help they need,” she said.

Michaelis also pointed to the massive salaries paid within the supportive housing industry. In a recent op-ed, she noted that eight top employees at Seattle’s Plymouth Housing shared $2.3 million in compensation in 2024, while the CEO of Catholic Charities of Eastern Washington collected two separate compensation packages worth roughly $300,000 each.

Then there’s the reality on the ground.

Andrea Suarez, founder of the volunteer group We Heart Seattle, says the Housing First model — which places people in housing without requiring treatment or sobriety — has already produced chaos in some projects.

“This is just bringing drugs into the neighborhoods,” Suarez said. “It’s warehousing of people with different abilities… It’s chaotic for the neighborhood and chaotic for the people living indoors.”

Suarez says some residents are even leaving supportive housing facilities because of crime, drug dealing, and other dangerous activity.

Meanwhile, the legislation raises legal questions as well. If the bill becomes law, it could clash with the U.S. Supreme Court’s 2024 ruling in City of Grants Pass v. Johnson, which gave local governments broader authority to enforce camping bans regardless of shelter availability.

But Olympia appears determined to keep doubling down on the same strategy: expand the Housing First model, override local control, and hope the results somehow improve.

Given Washington’s track record on homelessness so far, that’s a gamble many communities are understandably wary of taking. Read more at Center Square.

Light rail service between South Bellevue and Spring District stations was suspended Tuesday after trains mysteriously lost power early in the morning. Inspectors are now examining the overhead catenary system that supplies electricity to the trains, but as of Tuesday evening Sound Transit still hadn’t figured out what went wrong.

To keep riders moving, the agency deployed eight shuttle buses to patch the gap — which is a fitting metaphor for Sound Transit’s entire rail system: when the expensive trains fail, bring back the buses.

Officials say copper wire theft doesn’t appear to be the cause, leaving the agency still searching for answers while crews inspect the overhead system and prepare for possible repairs. In the meantime, trains are only running between Downtown Redmond and the Spring District.

The disruption also forced the suspension of practice runs across Lake Washington between South Bellevue and the International District/Chinatown station — not exactly reassuring news with the Bellevue-to-Seattle segment scheduled to open March 28.

This latest outage simply adds to the growing list of reliability problems plaguing the region’s massively expensive rail experiment, a project pushed for years by Democratic leaders who promised world-class transit. Instead, riders keep getting world-class disruptions.

And with the World Cup arriving this summer — and officials hoping light rail will help move tens of thousands of visitors — the region is once again left hoping Sound Transit can solve basic operational problems before the next breakdown hits. Read more at the Seattle Times.

Washington’s latest Public Charter Schools Report from the State Board of Education contains an inconvenient finding for Olympia: charter schools are producing strong academic results — especially for underserved students.

Students in grades four through eight at charter schools scored about 12 points higher in math and eight points higher in English than demographically similar peers in traditional public schools, roughly half a year of additional learning progress. In fifth grade, the advantage was even larger — nearly a full year of learning growth.

Charter schools are also serving many of the students policymakers say they want to help most. Black students make up 25.7% of charter enrollment, compared to 9.1% in surrounding districts, and low-income students account for 57.7% of charter enrollment.

Yet the sector is shrinking.

Two schools have recently closed or announced closures due in part to financial pressure, leaving just 15 charter schools serving about 4,800 students statewide, with roughly 1,200 families on waitlists and no new schools allowed since the legislature closed the authorization window in 2021.

The reason is simple: charter schools cannot access the same local levy and capital bond funding that traditional public schools receive, forcing them to rely on grants and philanthropy to stay open.

All of this comes as lawmakers debate record budgets nearing $80 billion, a $2.3 billion deficit, and a controversial 9.9% income tax.

The state’s own report shows a small part of the public education system is quietly delivering results — while Olympia’s policies ensure there will be fewer of those schools, not more. Read more at the Washington Policy Center.

Republican Gary Parker, a Gig Harbor restaurant owner and retired Intel engineer, has announced he’s running for the state Senate seat in Washington’s 26th Legislative District, currently held by Democrat Deb Krishnadasan.

Parker owns the popular BBQ2U restaurant in Gig Harbor and says the decision to run came after repeated encouragement from people in the community. Active in the Gig Harbor Chamber of Commerce, Rotary Club, and local philanthropy, Parker also founded the nonprofit Olympic Civic Services, which focuses on helping seniors and veterans.

While Parker has not held elected office, he did run for the Pierce County Charter Commission last year.

The 26th District — covering Gig Harbor, the Key Peninsula, Port Orchard, and parts of Bremerton — is one of the few politically competitive districts in Washington, currently represented by both Democrats and Republicans.

Democrats have controlled the Senate seat since Emily Randall first won it in 2018. Krishnadasan was appointed to the seat in 2024 after Randall was elected to Congress and later won the position in her own right last year.

So far, Parker and Krishnadasan are the only candidates who have filed with the Public Disclosure Commission, which allows them to begin fundraising. The candidate filing deadline is May 8, with the primary scheduled for Aug. 4, 2026.

Meanwhile, the 26th District will see several other competitive races this year. Republican David Olson, a Peninsula School Board member, plans to challenge Rep. Adison Richards (D-Gig Harbor), while Republican Katy Cornell and Democrat Renee Hernandez Greenfield are running for the House seat being vacated by Rep. Michelle Valdez (R-Gig Harbor).

In short, one of Washington’s most competitive districts is shaping up for another busy election year. Read more at the Washington State Standard.

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