In the latest round of budget proposals, Washington Senate Democrats have unveiled a plan that includes a variety of new taxes, despite an already massive expansion of the state budget. Over the past decade, the state budget has nearly doubled, yet Democrats continue to chase higher taxes, seeking additional sources of revenue rather than addressing the core issue: spending.

Last week, Senate Republicans presented a balanced budget that refrains from new taxes, opting instead for a more responsible fiscal approach.

Among the new taxes proposed by Senate Democrats are several measures that mirror Seattle's local taxes and expand them statewide. For instance, a 5% tax on payroll expenses for employers, specifically targeting those with payrolls above $7 million. This would generate an estimated $2.3 billion in revenue. If this sounds familiar, it’s because Seattle already levies a similar tax, known as the JumpStart tax. The problem here is clear: instead of looking for ways to rein in spending, lawmakers want to increase the tax burden on businesses, many of which are already struggling with the high cost of doing business in Washington state.

Another proposed tax hike would be on property taxes. The proposed budget would raise the current cap on annual property tax growth from 1% to a rate based on the combined growth of population and inflation. This change would apply to the state’s common school levy, as well as cities, counties, and special districts. This tax increase could generate as much as $779 million over the next four years, adding to the already burdensome property taxes that Washington homeowners face.

Perhaps the most concerning tax proposal is the so-called wealth tax. Aimed squarely at high-net-worth individuals, the plan would target wealth above $50 million, imposing a tax of $10 per $1,000 on certain financial assets like stocks and bonds. This would generate an estimated $4 billion annually. While Democrats argue this would only affect the ultra-wealthy, the broader implications of this kind of tax on the state’s economy are troubling.

In addition to these tax increases, Democrats are proposing the repeal of over 20 tax exemptions they consider outdated or ineffective. This includes carveouts for gold bullion and prescription drug wholesalers. This would generate around $1 billion in additional revenue.

On the sales tax front, Senate Democrats are proposing a reduction in the state sales tax rate, from 6.5% to 6%, starting in 2027 which is a good first step to helping Washington residents keep more of their own money.

Despite the growing revenues from the state’s tax collections, lawmakers are faced with a reality where the rate of growth in those revenues is slowing. This decline in revenue growth makes it increasingly difficult to sustain the level of tax-and-spend policies proposed by the legislature. Rather than trimming wasteful programs or reassessing unsustainable spending, the majority party is doubling down on tax increases.

The truth is that Washington state’s budget isn’t suffering from a lack of tax revenue; it’s suffering from a spending problem. Over the past decade, the legislature has consistently outspent tax revenues, resulting in an unsustainable budget trajectory. Tax revenue growth was once predicted to be 4.5% annually, prompting lawmakers to create and fund programs based on future revenue projections that are no longer realistic. Now, with the reality of slowing revenue growth, it’s time for lawmakers to face the truth: the state’s budget needs serious spending cuts, not more taxes.

Instead of focusing on trimming wasteful spending or eliminating inefficient programs, the majority party continues to introduce new taxes, many of which have already failed but could make a reappearance as budget provisos in the coming weeks.

Washington doesn’t have a revenue problem—it has a spending problem. Until this fundamental issue is addressed, we will continue to see tax hikes and budgetary issues that harm businesses and residents alike. It’s time for lawmakers to take a hard look at the state’s spending habits and make the tough choices necessary to ensure a sustainable future for Washington.