Washington Democrats push through $12 billion tax hikes, as new poll shows little support

Democrats in the Washington state Senate pushed through a massive $12 billion tax package over the weekend, despite an explicit call from Democratic Governor Bob Ferguson to scale back the level of taxes, and a new statewide poll rejecting the tax increases.

The Senate approved a suite of bills Saturday to close a multibillion-dollar budget shortfall. The proposals include expanding the capital gains tax, increasing the business and occupation (B&O) tax on large corporations and banks, lifting caps on property tax increases, and levying sales taxes on previously untaxed services like advertising and security.

Senate Bill 5814, the largest component, would generate nearly $5 billion over four years by expanding the retail sales tax to a range of services. Sen. Noel Frame (D-Seattle), who led the charge, argued the measures are necessary to modernize the state’s tax code for a 21st-century economy.

Republicans sharply disagreed, with Sen. Nikki Torres (R-Pasco) warning that “this would be an unprecedented increase in the sales tax” that hurts low-income Washingtonians the most.

New statewide poll shows tax increases wildly unpopular in Washington

The aggressive tax push appears to be clashing with public opinion and the governor.

A new poll conducted April 9–14 by right-leaning RMG Research for Napolitan News Service found a significant majority of voters—80%—believe lawmakers should slow the growth of government spending rather than raise taxes to balance the budget. Only 12% favored continuing spending growth paired with tax hikes.

Even when told the “spending freeze” approach came from Republicans, 68% still supported it. In contrast, when voters were told Democrats proposed the tax-heavy plan, support dropped sharply — with only 10% in favor and 88% opting out of the question entirely.

Where does Governor Bob Ferguson stand on tax increases?

The Washington Democrats’ taxes also came days after Ferguson said he didn’t support such dramatic tax increases.

“At a time of great economic uncertainty and assaults by the Trump Administration on core state services for working families, raising $12 billion in taxes is unsustainable, too risky and fails to adequately prepare Washington state for the crisis that looms ahead,” Ferguson said in a comment.

Ferguson’s approval rating stands at 45%, according to the same poll, with nearly as many voters (35%) expressing disapproval. Democrats in the Legislature fared worse, with 49% viewing them unfavorably compared to 46% who gave them a positive rating.

Polling break down on tax specifics

Individual tax proposals in the Senate package also face stiff headwinds, according to the poll.

A property tax cap increase from 1% to 3% is opposed by 77% of voters, including 53% who strongly oppose it. An expanded capital gains tax finds mixed reception, with 47% in favor and 49% opposed.

A hike in the B&O tax drew 69% opposition, with concerns it would hike prices and hurt small businesses. A payroll tax targeting high-income salaries at large firms was rejected by 53% of voters amid fears it would drive jobs out of state.

Democrats say they can’t cut their way out of the budget deficit

Despite the backlash, Senate Democrats insisted that spending cuts alone would not bridge the gap. Senator Majority Leader Jamie Pedersen said they’ve already identified $7 billion in cuts, delays, and deferrals but said taxes are still needed to fund education, health care, housing, and childcare programs.

Republicans countered with an alternative budget that avoids tax hikes altogether. Sen. Chris Gildon, R-Puyallup, said the Democrats’ budget relies on “ghost money” and budget gimmicks like one-time sales tax prepayments from businesses.

The tax bills now move to the House, where floor votes are expected early this week.

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