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Tax Foundation: WA ‘significantly costlier and less competitive’ under new budget

  • Washington state passed a budget package in April 2025 that raises taxes through five revenue bills impacting businesses and sales taxes.
  • Lawmakers enacted these increases to address funding shortfalls for a nearly $78 billion operating budget and a $15.5 billion transportation budget.
  • The tax hikes include business and occupation tax increases, surcharges on banks, higher fees on marriage licenses, storage units, liquor licenses, and fuel taxes.
  • These changes are projected to generate about $9.4 billion over four years, with critics warning the package makes Washington costlier and less competitive.
  • Democrats say the increases fund essential services amid inflation, while Republicans argue they disproportionately affect low- and middle-income residents.
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Tax Foundation: WA ‘significantly costlier and less competitive’ under new budget

(The Center Square) – Washington state’s budget package, the nearly $78 billion operating budget itself and five revenue bills that raise taxes by about $9.4 billion, a move that “cut[s] against the trend in cuts seen in most other states,”…

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atr.org broke the news in on Monday, May 5, 2025.
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