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March 28, 2025

Dear Neighbor,

As we enter the final weeks of the 2025 legislative session, House and Senate Democrats have unveiled tax proposals totaling between $15 to $20 billion—the largest tax increase in our state’s history. Washington has become one of the most expensive states to live in, and these tax increases will push families and small businesses to the brink.

The numbers don’t lie:

• Housing costs are 43% higher than the national average.
• Washington has the third-highest gas prices in the country, driven by a state-imposed 49.4-cent gas tax.
• Everyday costs, from groceries to energy, are soaring, but instead of offering relief, the Legislature is piling on more taxes.

Instead of finding ways to help, Olympia is making things worse by proposing:

• New income-style taxes that will inevitably expand to hit more Washingtonians.
• Higher taxes on businesses that will raise prices for consumers.
• New taxes and fees on daily essentials like fuel, transportation, and even tires.

At a time when Washington families are already stretched thin, raising taxes is not the answer.

Watch: How these taxes will hurt Washington families

As the House Republican Caucus Chair, I remain focused on policies that promote affordability and economic stability for working families and businesses.

The latest House and Senate proposals include billions in new taxes, ranging from higher property taxes and transportation fees to new taxes on cell phones, beverages, outdoor activities, and small businesses.

These tax hikes will make life more expensive for everyone while failing to address Washington’s real problems. Watch my latest video for a closer look at how these proposals will hurt families and small businesses.

How Did We Get Here?

Have you ever stopped and asked yourself, “How did we get here?”

Well, to start, Washington doesn’t have a revenue problem. It has a spending and priorities problem.

For years, the majority party in Olympia has pushed for bigger budgets, more government, and higher taxes. State spending has more than doubled in the last decade, far outpacing population growth and inflation. Despite this massive increase, they are coming back for billions more.

Instead of prioritizing spending and focusing on what Washingtonians actually need, they continue to:

• Fund expensive, ineffective programs.
• Expand state bureaucracy while neglecting core services.
• Look for new ways to take more money out of your pocket.

The current budget already includes $71.8 billion in spending, yet Olympia is demanding even more.

The problem isn’t a lack of funding. It’s bad budgeting.

Breaking down the Democrats’ tax plan: Billions more out of your pocket

Washington doesn’t have a revenue problem—it has a spending and priorities problem. The state budget has already ballooned past $100 billion, yet Democrats are seeking billions more in new and increased taxes.

Here’s what they’re proposing:

1. Business and Occupation (B&O) tax surcharge – House Bill 2045

This bill imposes a new B&O tax surcharge on high-grossing corporations and financial institutions.

Negative Impact: This will drive up costs for consumers as businesses pass these taxes onto you. It will also discourage investment in Washington, make it harder to secure loans, and push job creators elsewhere.

2. Property tax increase – House Bill 2046

This bill raises property taxes, increasing costs for homeowners and renters alike.

Negative Impact: Housing affordability is already a crisis, and this will push more families out of their homes while increasing rents.

3. Increasing local property taxes for schools and public safety – House Bill 2049

This bill increases state and local property tax caps, allowing higher taxes at all levels.

Negative Impact: This will exacerbate housing affordability issues while failing to deliver meaningful improvements in schools or public safety.

4. Financial intangibles tax – Senate Bill 5797

This bill creates a tax on financial intangible assets, such as stocks, bonds, and mutual funds, with an assessed value over $50 million.

Negative Impact: This will drive investment out of Washington, forcing entrepreneurs and job creators to relocate, reduce economic opportunities, and ultimately lead to higher taxes on middle-class families when revenue falls short.

5. Higher taxes on nicotine and smoking cessation products – House Bill 2033

This bill imposes a nearly 50% tax on Zyn and similar non-combustible smoking-cessation products.

Negative Impact: This tax disproportionately hurts low-income Washingtonians and those trying to quit smoking, making it harder for people to access alternatives.

6. Tax on consumer electronics – House Bill 1517

This bill adds a new tax on the sale of cell phones, smartwatches, and other devices.

Negative Impact: At a time when technology is essential for school, work, and communication, this tax will increase costs for families and small businesses.

7. Higher hunting and fishing license fees – House Bill 2031

This bill raises fees for hunting and fishing licenses, including for youth and seniors.

Negative Impact: This tax hurts outdoor enthusiasts and conservation efforts, making it more expensive for families to enjoy Washington’s natural beauty.

8. Higher liquor license fees – House Bill 2035

This bill increases liquor license fees by 50%, including for banquet permits for weddings and events.

Negative Impact: This will increase the cost of operating restaurants, hosting weddings, and holding community events, ultimately harming small businesses and working families.

9. Higher fees on concerts and sporting events – House Bill 1613

This bill increases fees for attending concerts, sporting events, and entertainment venues.

Negative Impact: This tax makes entertainment less accessible for families, raising costs on everything from professional sports to live music.

10. Gas tax hike and new transportation fees – House Bill 2043

This bill raises gas taxes, diesel taxes, and vehicle fees, adding billions in costs over the next six years.

• Gas tax increase: A 9-cent per gallon hike, further elevating Washington’s already high fuel prices.
• Diesel tax hike: An additional 15-cent per gallon tax, impacting businesses reliant on transportation.
• New tire tax and higher vehicle fees: These additional costs will burden commuters, businesses, and families, particularly in rural communities where public transit options are limited.

Negative Impact: Washington already has some of the highest gas prices in the nation, and these increases will further burden commuters, especially in rural areas, and drive up costs for small businesses, farmers, and families who rely on personal transportation.

11. Property tax growth based on population and inflation – Senate Bill 5798

This bill ties property tax increases to population growth and inflation, meaning tax bills will automatically go up every year.

Negative Impact: Homeowners will see higher tax bills annually, even if home values don’t rise.

12. Increased Discover Pass Fees – Senate Bill 5390

This bill raises the cost of the Discover Pass by 50%, increasing fees for accessing state parks.

Negative Impact: This tax makes outdoor recreation more expensive, hitting families who rely on public lands for affordable activities.

A smarter approach: The $ave Washington budget

Instead of imposing new taxes, Senate Republicans have introduced the $ave Washington budget—a balanced plan that funds essential services without raising taxes. Key features include:

• No tax or fee increases: The budget addresses the deficit without resorting to tax or fee hikes, contrasting sharply with Democrat proposals that include property tax increases, a wealth tax, and more. (Read more here)
• Sustainable spending: By making prudent spending decisions, the budget maintains near-record funding for social services without necessitating unpopular tax increases.
• Prioritizing education and vulnerable populations: The plan increases funding for K-12 education, invests more in students while honoring educators, and preserves services for Washington’s most vulnerable residents.

House Republican budget reforms

In the House, Rep. Travis Couture, the Republican budget lead on the House Appropriations Committee, has proposed a package of budget reform bills aimed at curbing out-of-control spending. These reforms focus on:

• Prioritizing essential services first.
• Implementing new limits on excessive budget growth.
• Enhancing accountability to prevent wasteful spending.

Your voice matters—Speak out against these tax increases

These tax increases will impact every Washington family. I want to hear from you.

• How will these tax hikes affect your family or business?
• What do you want to see prioritized in the budget?

Please contact my office and share your thoughts. Together, we can fight for a more affordable, accountable Washington.

Sincerely,

Peter Abbarno