NEWSLETTER: Taxes so high even a Democrat wants cuts

Dear Friends and Neighbors,

On October 1, several of the Democrats’ newest tax increases went into effect—and you may already be seeing the impacts in higher prices and banking fees. Here are just a few examples:

  • New sales tax on previously untaxed services (SB 5814). This tax will take $4 billion out of taxpayers’ pockets over the next four years and require the Department of Revenue to hire 44 employees just to administer it. One way you will feel this pinch is through higher streaming and cable fees.
  • Higher taxes on service businesses (HB 2081). The tax rate on many service providers jumped to 2.1%, from 1.75%, depending on their level of gross revenue. Because the tax is based on **gross receipts and not just profit**, this hits small-margin businesses the hardest. The result? Lost jobs and higher prices.
  • A 50% increase in the cost to access state-owned lands. The annual Discover Pass went from $30 to $45. The state predicts this will lead to 15% fewer visitors to our parks, but Democrats did it anyway.

Senate Republicans offered a responsible alternative:

  • A balanced four-year budget
  • No cuts to core services
  • No tax increases

Democrats refused to allow a vote on it.

Instead, they and Governor Ferguson imposed the largest package of tax increases in state history to fund a budget that still made deep and troubling cuts—including closing a facility that cares for drug-addicted newborns, kidney dialysis, and mothballing a much-needed mental health facility in Clark County.

Almost immediately after its passage, their budget began to unravel. According to the state’s September revenue forecast, the current two-year budget is already more than $400 million in the red. And that doesn’t even include the $2+ billion in legal settlements the state is expected to owe over the next four years due to mismanagement and lawsuits.

One Democrat is even talking about a tax cut. Is it enough? The legislator who wants to now cut sales tax  voted for the Senate Democrats’ version of the new budget, which required an astounding $21 billion in new taxes to balance, before voting for the final budget and the $12+ billion tax package that went with it. A tiny cut in sales tax would not come close to providing relief to the taxpayers.

Either way, expect them to push for even higher taxes when we address the supplemental budget during the 2026 legislative session beginning in January.


How much is enough?

Growing government while digging deeper into taxpayers’ pockets—and sacrificing vital services—is the wrong direction for Washington.

If cuts are necessary, we should start by reducing wasteful spending and bureaucracy, not programs that support the most vulnerable. Raising taxes should always be the last resort. Forcing hardworking Washingtonians to pay for the majority’s poor decisions is unacceptable.

You deserve better.

Sincerely,

Senator John Braun
R-Centralia

 

 

Our paid leave program is headed for a financial cliff

While I’m on the subject of things that are putting the state budget in a hole, I have to mention the Paid Family Medical Leave Act (PFMLA). This is the program that pays a benefit to Washington workers who need to take approved family or medical leave.

The program already experiences intermittent deficits as it pays out benefits before receiving premiums, but it will see a sustained $350 million deficit in 2029. 

More than 320,000 people applied for the program between July 1, 2024 and June 30 of this year. Of those, 240,000 people received $2 billion in benefits — an increase of $300 million over the previous year.

What is the solution?

During this year’s session, many of my colleagues and I voted for a bill that would have required the total premium rate for the program to be set at the lowest possible rate necessary to maintain solvency, reduce fluctuations, and build a four-month reserve. Although the bill passed in the Senate, House Democrats killed it.

Instead, they attempted to increase the current cap on the amount of the premium for the program, which is now 1.2% of your salary, to 2%. I expect to see another attempt in the upcoming legislative session to increase or remove the cap.

I will keep you informed as this develops.

 

Protecting signature gatherers

My colleague Sen. Jeff Wilson, R–Longview, is preparing legislation to strengthen and clarify protections for Washingtonians engaged in the initiative process. Recent reports of harassment and intimidation toward signature gatherers have highlighted the need for clearer laws and more consistent enforcement.

Sen. Wilson is reaching out to law enforcement statewide to seek their input as he finalizes the bill. His goal is to ensure that officers have the tools they need to protect citizens’ rights and that everyone can safely take part in this vital form of civic participation.

Protecting the people’s voice has always been a Washington value, and this effort reaffirms our commitment to that principle.

 

 

What to do about Washington’s housing crisis?

Washington continues to face a critical housing shortage. Every year, Democrats talk about affordable housing, yet their actions make the problem worse. Instead of removing barriers, they pass new regulations, higher taxes, and increased fees that make it harder and more expensive to build homes.

Consider just a few of the ways these policies are driving prices up:

  • Restricting access to timberland When the state locks up land that could be responsibly harvested and managed, we get less lumber and higher prices. Builders can’t build with what they can’t afford to buy.
  • Overregulation and permitting delays Cumbersome permitting processes and excessive regulations slow down or stop development entirely. Time is money—and these delays add thousands of dollars to the price of every home or apartment.
  • Reduced supply drives up prices for everyone When we don’t build enough housing, homeowners and renters both pay the price. Scarcity sends prices skyrocketing.

These policies don’t just hurt families—they also hurt the state budget. When fewer homes are built, the state misses out on property-tax revenue from new housing, as well as other taxes related to real-estate transactions and construction. To make up the difference, Democrats have repeatedly raised taxes on existing homeowners in a desperate attempt to balance the budget.

The solution is simple:

✅ Make it easier and less expensive to build

✅ Increase supply

✅ Lower costs for everyone

It’s time to stop talking about affordable housing and start removing the barriers that prevent it.

Listen to my new podcast where I dig deeper into this issue with and discuss real solutions that can get Washington building again. My guest is Kurt Wilson, Chief Operating Officer at Soundbuilt Homes in Puyallup.