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Several major corporations, including Amazon, Microsoft, Alaska Airlines, Costco, and Nordstrom, have called on Washington state leaders to reconsider proposed payroll and wealth tax increases, citing potential economic instability and job losses. The companies issued a letter to Governor Bob Ferguson and state legislative leaders, urging them to review the proposed tax measures, which they argue would result in the largest tax increase in the state’s history.
The letter highlighted concerns over Washington’s increasing budget, which has more than doubled in the past decade, growing by 37% in just the last four years. The signatories warned that such growth outpaces inflation, population, and personal income growth, threatening the state’s long-term economic competitiveness.
Microsoft President Brad Smith voiced strong opposition, warning that the proposed wealth tax could drive businesses and entrepreneurs out of the state. He pointed to Europe’s historical experiences, where similar taxes were largely repealed due to job losses. Smith also noted that Amazon has reduced its Seattle workforce by 10,000 jobs since the city enacted the “Jumpstart” payroll tax, while expanding its Bellevue workforce by 25,000 jobs.
The letter also underscored the financial advantage of relocating tech jobs elsewhere, citing that it is 30% cheaper to employ a software engineer in Vancouver, Canada, compared to Washington. Companies like Microsoft, Amazon, and Zillow have already been increasing their presence in Vancouver due to economic factors, including currency exchange rates.
While state leaders argue that the proposed wealth tax could generate $4 billion to address a $16 billion budget gap, critics claim that past overspending, rather than revenue shortfalls, has led to the deficit. Governor Ferguson has stated he would veto any bill that excludes a wealth tax but has not confirmed his stance on the payroll tax proposal.
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