Washington state Republicans say tax hike could cost families extra $2,000 per year

The Democrats’ sweeping tax package, signed into law by Ferguson, includes a variety of new and expanded taxes and fees affecting consumers, families, and businesses. The GOP has accused the governor of breaking promises made during his inaugural address to prioritize fiscal responsibility, avoid regressive taxation, and steer clear of budget gimmicks.

According to Senate Republicans, the newly enacted taxes will generate over $12.5 billion in combined state and local revenue over the next four years by raising Business & Occupation (B&O) taxes, expanding sales taxes, including on housing, healthcare, and services like security and staffing, hiking property taxes, and expanding capital gains and estate taxes.

Senate Republicans estimated the total cost by aggregating the revenue projections of each tax measure and dividing them across the state’s 8 million residents. The result: by Fiscal Year 2029, a typical family of four could see their tax bill grow by $2,000 per year, not including transportation-related increases such as the 6-cent-per-gallon gas tax hike and the resulting increases in the cost of goods.

“These are real dollars coming out of real people’s pockets,” said Sen. Nikki Torres (R-Pasco), assistant Republican budget leader. “Whether it’s groceries, gas, or housing, these costs will trickle down and make everyday life even more unaffordable.” Beyond taxes, Washingtonians will also feel the pinch from fee hikes, including childcare copays that will double, and nursing home per-bed fees that will triple.

Despite what the taxes mean for state coffers, critics say the budget still cuts or underfunds vital services, including programs for persistently low-performing K-12 schools, victim-notification technology under the Tiffany Hill Act, dental care reimbursements for low-income individuals, postpartum care coverage, public employee hospital reimbursements, and behavioral health and higher education programs

Senate Deputy Republican Leader Drew MacEwen (R-Shelton) criticized the governor for walking back pledges to shield families from regressive tax burdens.

“When Governor Ferguson stood before us in January, many were hopeful he’d chart a different course,” MacEwen said. “Instead, he signed off on the very same budget gimmicks and massive tax hikes he said he’d avoid.”

MacEwen slammed the budget as one that “grows government at the expense of hardworking citizens,” adding that the governor missed an opportunity to prove his commitment to fiscal responsibility.

House Republican Budget Leader Rep. Travis Couture echoed those sentiments, saying the budget “taxes the joy out of Washington, attacks job creators, and worsens our affordability crisis.”

Senate Republican Leader John Braun also didn’t mince words: “On his first day in office, Governor Ferguson spoke of fiscal responsibility, yet today he’s supporting the largest tax increase in state history.”

Ferguson, who had initially proposed $4 billion in budget cuts but ultimately approved only $25 million after internal party resistance, defended the new tax package as a “necessary compromise” to protect core services. “I said we’re not going to be able to tax our way out of this. It became equally clear that we’re not going to cut our way out either,” Ferguson said in a 90-minute press conference when signing the bill. “No one’s excited about increasing the gas tax, I can assure you.” Still, Ferguson acknowledged the strain this budget may put on Washingtonians. “It is becoming unaffordable for a lot of families,” he admitted.

Sen. Chris Gildon and Sen. Nikki Torres championed the Republican “Save Washington” budget proposal (SB 5810), which they say avoided tax hikes and budget gimmicks entirely. According to Republicans, their plan preserved essential services while keeping costs down for families and businesses.

“The governor could have vetoed these unnecessary taxes,” said Torres. “He should have called the Legislature back to get it right. Instead, he’s made life demonstrably more expensive for Washington families.”