Washington Lawmakers Pass $9B Tax Hike Targeting Major Tech Companies

Washington state lawmakers concluded their legislative session by passing a $77.9 billion budget that includes over $9 billion in new and higher taxes, primarily targeting large technology firms such as Amazon and Microsoft through significant Business and Occupation (B&O) tax hikes. The tax package aims to address a projected $16 billion budget shortfall and also affects a wide range of industries including banks, hospitals, and grocery stores. Additional measures include raising the state's capital gains tax and expanding the sales tax to advertising and software services. Governor Bob Ferguson praised the legislature for meeting several of his priorities but expressed caution, stating he will carefully review all revenue increases before signing the budget into law. The process drew sharp criticism from Republican lawmakers, who objected to the speed and lack of transparency during budget negotiations, voicing concerns about increased costs, especially in health care. Democratic leaders, meanwhile, characterized the session as one of the most difficult in recent memory, citing the urgency to address fiscal challenges amid broader economic uncertainty.