Washington Gov. Bob Ferguson recently delivered his annual State of the State address in front of the legislature in Olympia. His message: prepare for taxes to go up and say goodbye to affordability. From a new high-earner income tax to using state funds to pay for SNAP benefits for non-citizens, Gov. Ferguson’s priorities are out of touch with the issues of working families in our state.
The so-called “millionaire’s tax” was the governor’s big-ticket item in the address. This proposal is not only the latest attempt at an illegal income tax, but a textbook redistribution of wealth. Ferguson lauded that the state should “take a significant portion of these dollars and put them back in the pocket of Washingtonians.” Instead of lowering existing taxes on middle-class families struggling to make ends meet, the governor has opted for an unconstitutional income tax on higher earners, which will push them to other states, reduce our revenue, and worsen our budgetary woes. Make no mistake, if Democrats in Olympia get this tax through the courts, it will not be long before they expand it to middle-class Washingtonians.
Ferguson also called for revenue from his “millionaire’s tax” to be used to “lower taxes on small businesses.” Ironically, the governor signed a budget last year to increase the Business and Occupation Tax. This is a tax on all revenue a business takes in, regardless of whether they make a profit. The costs of this increase will be absorbed by the consumer, who can expect to see the general price of goods and services go up. With costs and inflation already taking a toll on working families, Ferguson is only adding fuel to the fire.
The governor also failed to mention in his address the state’s multibillion dollar budget shortfall, but his fiscal plan, released in December, indicates a variety of proposed budget cuts. While I had hoped to read the state would cut waste and identify bloated areas of spending, I instead learned that our two largest universities would receive a three percent, across-the-board cut, and further cuts to our rural education institutions across the state. Meanwhile, Ferguson’s plan dedicates nearly $50 million to providing roughly 30,000 non-citizens SNAP benefits at the taxpayer’s expense. You read that correctly: Gov. Ferguson wants a state income tax while pledging millions of taxpayer dollars for benefits to illegal immigrants.
As Washingtonians struggle with prices at the grocery store, they are also paying more for energy across the board. While the national average price of gas is currently around $2.80 per gallon, our state’s gas tax increase has skyrocketed fuel prices to over a dollar more than the national average. The restrictive Climate Commitment Act has forced traditional sources of energy out of our state, driving home and business energy bills through the roof. At the same time, efforts persist in Olympia to breach the four Lower Snake River dams, which produce as much energy per year as a nuclear power plant. With energy demand expected to reach all-time highs over the next decade, The state of Washington is not in a position to remove vital sources of baseload power that keep the lights on when we need it most.
I would like to be able to give Gov. Ferguson some credit, as he did inherit a state economy buried in billions of dollars of debt and record spending under the leadership of Jay Inslee. The governor’s remarks at the start of his term indicated a willingness to work across the aisle to address the challenges we face, but his remarks last week leave little to wonder about the out-of-touch priorities he will pursue this legislative session.
In the meantime, I will be using the remainder of my term in Congress to continue reining in federal spending through my role on the House Appropriations Committee, cutting regulations for small businesses, and supporting policies that help the working families Gov. Ferguson appears to have left behind.
