Joint Statement
OLYMPIA — In response to the conclusion of the 2025 legislative session, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce and Washington Roundtable today issued the following statement in strong opposition to the passage of the largest tax increase in Washington state history.
We are deeply disappointed by the legislature’s decision to approve nearly $9.4 billion in state and $3 billion local, for a total of over $12 billion in tax increases — an unprecedented move that comes at the worst possible time for working families and local employers.
As Washingtonians struggle with rising inflation, affordability challenges, and economic uncertainty, these massive tax hikes — as much as 400% in some sectors — will hit hard on small businesses and the communities they serve. Childcare providers, assisted living centers, repair shops, wholesale groceries, and other local retailers already operating on thin margins will now be faced with the choice to raise prices, cut jobs or close their doors.
“The legislators are voting on these tax increases, and can’t even tell us how big they are,” said Joe Fain, president and CEO of the Bellevue Chamber of Commerce. “Best estimates point to nearly $2,000 per year for a family of four. Every aspect of life in Washington is about to get more expensive. While some in the legislature might claim they are helping working families, they are actually doing irreparable harm.”
Steve Mullin, president of the Washington Roundtable, added: “Washington is ranked 47th in the nation for affordability – we are almost the worst state in the country for affordability. This is a crisis, and it is absurd for any legislator to suggest that the largest tax increase in state history is not going to make that affordability crisis even worse.”
“It’s just common sense – you can’t make things more affordable by making them more expensive,” said Kris Johnson, president and CEO of the Association of Washington Business. “These costs simply can’t be absorbed by businesses—they will be passed on to consumers in the form of higher prices for everyday goods and services.”
Rachel Smith, president and CEO at the Seattle Metropolitan Chamber of Commerce, cautioned that legislators should not follow Seattle’s lead when it comes to raising significant new business taxes: “The fact that the city of Seattle’s business tax revenues are down and falling – even before harmful economic actions from the federal government like tariffs – is a cautionary tale, but clearly not one being heeded in Olympia.”
Contrary to claims of a budget shortfall, state revenues are rising. The true challenge is not that taxes are too low, it’s that spending is too high – and simply unsustainable. State spending has doubled over the last decade, yet Washingtonians are not seeing meaningful improvements in public services like education, housing, or safety.
These extreme tax hikes send the wrong message to employers: grow your business, and you’ll literally pay for it. At a time when job creators need certainty and support, the state is punishing growth and innovation.
We urge lawmakers to reverse course and adopt a more fiscally responsible approach — one that prioritizes responsible spending, cuts waste, and focuses on long-term sustainability rather than pushing historic tax burdens onto families and small businesses.
Washington can and must do better.
###
About the Seattle Metropolitan Chamber of Commerce
The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,500 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit seattlechamber.com.
About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Roundtable members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians. For more information, visit waroundtable.com.
About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association representing all sectors of business. AWB serves as both the state’s chamber of commerce and the manufacturers association. While its membership includes major employers like Boeing and Microsoft, 90% of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit awb.org.
About the Bellevue Chamber
With hundreds of members representing tens of thousands of employees, the Bellevue Chamber is the relationship, policy, and business development hub for organizations throughout the Puget Sound region. We connect businesses with potential employees, sales opportunities, and social engagement, and provide our members access to industry experts and real-time information impacting our city and the Eastside. Learn more at bellevuechamber.org.
Media contact: Jillian Henze, APR
Cell: 425-785-6731
jillianh@seattlechamber.com