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Saturday, Dec 06, 2025

Washington Lawmaker Proposes Statewide Corporate Payroll Tax to Shore Up Budget

Washington Lawmaker Proposes Statewide Corporate Payroll Tax to Shore Up Budget

Seattle Representative unveils plan to extend city’s ‘JumpStart’ model statewide, aiming to raise over two billion dollars annually from large firms
A first-term state representative from Seattle has proposed a new statewide tax measure intended to help balance Washington’s precarious budget.

At a news conference on the Capitol steps, Representative Shaun Scott introduced a bill that would extend a corporate-payroll levy—modelled on Seattle’s “JumpStart” tax—across the state.

The proposal aims to raise more than two billion dollars per year by taxing large employers such as major technology firms.

Under the plan, companies with substantial payroll and revenue – including giants such as Amazon and Microsoft – would be subject to the new levy.

The measure is being championed as a way to generate revenue needed for public priorities, particularly in view of mounting budget pressures in Olympia.

Supporters argue the tax would ensure that large, high-earning corporations contribute proportionally to state services, alleviating pressure on other taxpayers and helping to stabilize funding for education, public safety and social services.

The proposal emerges at a time when state lawmakers are under intense pressure to close funding gaps amidst economic uncertainty and declining traditional revenue streams.

Opponents, however, warn the plan could undermine the business climate.

Some critics point to the original JumpStart tax in Seattle — which increases costs for large employers — and argue that applying a similar levy statewide could discourage hiring, raise labor costs, or incentivize firms to relocate to lower-tax states.

They contend that the burden may ultimately shift from corporations to workers in the form of lower wages or reduced hours.

The proposal joins a broader effort among state Democrats to craft new tax legislation.

Earlier this year, state Senate Democrats unveiled a suite of tax options targeting the wealthiest individuals and biggest corporations — part of an effort to raise billions to close a multiyear budget gap.

Now, Representative Scott’s bill may become one of the most high-stakes — and contentious — pieces in the upcoming legislative session, as lawmakers weigh fiscal necessity against economic competitiveness.

Governor and legislative leaders will face difficult decisions in the months ahead on whether to adopt the measure, modify it, or seek alternative paths to a balanced budget.

At stake is the state’s ability to maintain core public services without overburdening smaller businesses or ordinary workers.
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