WA governor pressed to veto 1.8B piece of Democrats tax bill

Business leaders in Washington state are urging Gov. Bob Ferguson to veto a provision in House Bill 2081 that would impose a 0. 5% surcharge on high-grossing firms, claiming it will significantly raise food prices. The Washington Hospitality Association and Washington Food Industry Association argue that the surcharge, combined with a general tax increase, will burden consumers at grocery stores and restaurants. The controversial measure is projected to generate $1.

86 billion over four years, with food wholesalers contributing about $100 million. Supporters of the bill warn that removing the surcharge could destabilize the state budget, necessitating a special legislative session. House Bill 2081, passed by majority Democrats, would permanently increase the state's business and occupation tax rates for the first time since 1983. Critics note that the surcharge exempts major corporations in sectors like technology and oil, raising questions about fairness. House Majority Leader Joe Fitzgibbon has yet to discuss the bill with Ferguson but acknowledges its fiscal significance.

The debate highlights ongoing tensions between tax policy and the economic realities faced by businesses and consumers alike.