No good business goes unpunished: B&O tax increases
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House Bill 2045 imposes a new 1% surcharge on gross receiptsfrom Washington businesses earning over $250 million a year and hikes the existing B&O tax on large financial institutions from 1.2% to 1.9%. Lawmakers call it an investment in public services—but in reality, it’s a textbook case of bad tax policy that will hit consumers and workers hardest.
Gross receipts taxes are fundamentally flawed. They don’t care whether a business is profitable or not. A company could be barely breaking even—or even operating at a loss—and still owe the state a hefty tax bill just for being big. High revenue with razor-thin margins? Too bad. Washington’s coming for you anyway.
And when a business gets hit with higher expenses, it doesn’t just eat the cost. It reacts the only way it can: by cutting jobs, lowering wages, delaying hiring, or raising prices. Either way, the pain gets passed down—to workers, to customers, and to communities.
Making money? There’s your first mistake:
This bill basically tells large employers: grow too big, and we’ll make you pay for it. That’s a dangerous message to send in a competitive economy. Want more jobs, innovation, or capital investment in Washington? You won’t get it by raising a giant red flag that says, “If you succeed here, we’ll make you regret it.” Companies have options—and many of them don’t involve sticking around.
Big promises, no accountability:
The bill waves around promises about education, public safety, and healthcare—but doesn’t earmark a dime for specific outcomes. No performance metrics. No spending caps. No guarantee this money even reaches the services it’s supposed to support. Just a blank check with “trust us” written in the memo line. Taxpayers deserve better than that.
Sticker shock for everyone:
Businesses don’t absorb taxes—they pass them on. This tax hike may be aimed at corporate giants, but the fallout will land squarely on everyday Washingtonians. Expect higher prices, new fees, fewer local services, and shrinking job opportunities—all thanks to Olympia’s latest revenue grab.
House Bill 2045 imposes a new 1% surcharge on gross receiptsfrom Washington businesses earning over $250 million a year and hikes the existing B&O tax on large financial institutions from 1.2% to 1.9%. Lawmakers call it an investment in public services—but in reality, it’s a textbook case of bad tax policy that will hit consumers and workers hardest.
Gross receipts taxes are fundamentally flawed. They don’t care whether a business is profitable or not. A company could be barely breaking even—or even operating at a loss—and still owe the state a hefty tax bill just for being big. High revenue with razor-thin margins? Too bad. Washington’s coming for you anyway.
And when a business gets hit with higher expenses, it doesn’t just eat the cost. It reacts the only way it can: by cutting jobs, lowering wages, delaying hiring, or raising prices. Either way, the pain gets passed down—to workers, to customers, and to communities.
Making money? There’s your first mistake:
This bill basically tells large employers: grow too big, and we’ll make you pay for it. That’s a dangerous message to send in a competitive economy. Want more jobs, innovation, or capital investment in Washington? You won’t get it by raising a giant red flag that says, “If you succeed here, we’ll make you regret it.” Companies have options—and many of them don’t involve sticking around.
Big promises, no accountability:
The bill waves around promises about education, public safety, and healthcare—but doesn’t earmark a dime for specific outcomes. No performance metrics. No spending caps. No guarantee this money even reaches the services it’s supposed to support. Just a blank check with “trust us” written in the memo line. Taxpayers deserve better than that.
Sticker shock for everyone:
Businesses don’t absorb taxes—they pass them on. This tax hike may be aimed at corporate giants, but the fallout will land squarely on everyday Washingtonians. Expect higher prices, new fees, fewer local services, and shrinking job opportunities—all thanks to Olympia’s latest revenue grab.
