Governor Ferguson rebukes $12B tax proposal from WA lawmakers, calling it ‘unsustainable, too risky’
Apr 17, 2025, 4:14 PM | Updated: Apr 18, 2025, 10:04 am
Governor Bob Ferguson announces he won't accept either Democratic budgets written. (Photo courtesy of TVW)
(Photo courtesy of TVW)
A recent $12 billion tax proposal from Democratic lawmakers in Olympia was basically nixed by Democratic Washington Governor Bob Ferguson on Thursday. In a proactive move, the Democratic governor hinted he may veto the taxes should they be part of the tax plan to balance the state budget.
Ferguson, normally a champion for progressive reforms, didn’t mince words Thursday when reacting to the proposed tax package from House and Senate leaders. In a statement packed with warnings about looming federal cuts and economic uncertainty, Ferguson made it clear: the price tag is just too high.
“At a time of great economic uncertainty and assaults by the Trump Administration on core state services for working families,” Ferguson said, “raising $12 billion in taxes is unsustainable, too risky, and fails to adequately prepare Washington state for the crisis that looms ahead.”
That’s about as close to a veto warning as it gets without him actually using the word.
Democrats dropped a series of new tax proposals on Tuesday, totaling $12 billion. The taxes would target millionaires, large corporations, and EV manufacturers who are selling unused carbon credits for profit.
The five bills are scheduled for their first public hearings on Wednesday, giving supporters and critics barely any time to digest the details. The governor made his statement 10 days before the 105-day session is scheduled to end.
Big retailers would be forced to pre-pay part of their 2027 sales tax liability in 2026—or get slapped with a 10% penalty. The plan also includes increasing the capital gains tax on the sale of stock and investments from 7% to 9.9%.
Lawmakers are trying to close what Governor Ferguson estimates to be a $16 billion budget shortfall, brought on by a swirl of inflation, rising costs, and—if you ask Ferguson—a not-so-helpful federal government. His statement slams the Trump Administration for slashing federal funds, blocking emergency relief requests, and rolling out tariffs that have hit Washington’s trade-heavy economy especially hard.
“Federal funds make up 28% of our state budget,” he said, listing off Medicaid, education, child welfare, and emergency response as just a few of the vulnerable areas.
But while Ferguson gave lawmakers credit for putting in the hours and shifting away from an untested wealth tax, his message was crystal clear: this can’t be the plan.
Republicans have proposed a no-tax, no-cut budget, which Ferguson has also said could be too drastic.
The Democrats’ proposal includes a mix of new taxes and revised rates, but details are still coming into focus. What’s certain now is that it faces serious resistance from the Governor.
Matt Markovich is the KIRO Newsradio political analyst. Follow him on X. Read more of his stories here.
