Reps. Abbarno and Orcutt examine the impacts of state tax and regulatory policies during Centralia tour

State Representatives Peter Abbarno, R-Chehalis, and Ed Orcutt, R-Kalama, recently toured a major food-distribution center, United Natural Foods Inc., at the Port of Centralia, to better understand how Washington’s tax structure and regulatory policies affect employers, workers, and the broader community.

The tour gave the lawmakers a firsthand look at how state tax and regulatory decisions translate into real-world operational challenges for employers with narrow profit margins. The Centralia facility employs approximately 400 workers and serves as a regional hub for food distribution and charitable support.

The lawmakers heard concerns about the latest tax increases, such as the increase in Washington’s business and occupation (B&O) tax – a gross receipts tax assessed on total revenue – as being a significant concern for employers, especially those operating with thin profit margins. They also heard concerns about any increase in regulations, as those also add to operating costs.

For employers reporting margins as low as 1.7%, Abbarno and Orcutt said rising taxes and regulatory compliance costs can limit growth, restrict hiring, and ultimately drive up costs to consumers.

“Site visits like this are essential to responsible policymaking,” said Abbarno, House Republican Caucus Chair. “When the Legislature debates tax and regulatory policy, it’s important to understand how those decisions affect employers with thin margins and the workers and families who rely on them. Washington’s cost of doing business continues to rise, and we must pursue meaningful tax relief and regulatory reform that supports job growth and keeps employers competitive.”

“My recent tour of the UNFI facility in Centralia was a great opportunity to see what they do and how they serve the citizens of our area. In addition to distributing food to many local grocery stores as efficiently as possible, they also deliver to food banks and support local community service organizations and causes,” said Orcutt, ranking member on the House Finance Committee. “The visit gave me a chance to talk with this employer to learn about the impacts of state policies on every employer’s ability to provide these benefits within the community they serve. Added costs to employers have multiple negative impacts on most everyone in our community when they lead to higher prices or lost donations. This especially hurts lower-income families, who can least afford any higher costs or lost benefits. This is why we work so hard in opposition to tax increases and more burdensome regulations.”

Abbarno and Orcutt said the tour will inform their legislative work as the 2026 session approaches, particularly efforts to reduce tax burdens, streamline regulatory requirements, and improve Washington’s overall economic competitiveness.

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Washington State House Republican Communications
houserepublicans.wa.gov