About the Author
Key Findings
- Washington’s tax burden has risen sharply since 2013, despite prior commitments to avoid tax increases, with the state budget growing 51% and property tax collections increasing by 98%.
- Washington has some of the worst business competitiveness rates in the country, including business formation, friendliness and survival.
- The state’s business tax climate has deteriorated significantly, falling from 6th best in 2014 to 5th worst in 2025, discouraging new business creation.
- Post-pandemic business recovery lags behind other states, with only three Washington counties experiencing business growth between 2019 and 2023.
- Major economic centers, including King, Pierce, and Spokane counties, saw negative business growth, worsening the state’s economic outlook.
- Washington’s first-year business failure rate is 40.8%, nearly double the national average, with over half of new businesses failing within five years.
- High taxes and regulatory burdens are key drivers of Washington’s economic decline, requiring urgent policy reforms to improve competitiveness and business survival.
Introduction
In 2012 candidate Jay Inslee ran on no-new-taxes platform, saying that under his administration economic growth would provide adequate funding for public services, without imposing new taxes or increasing tax rates. At the time Inslee pledged, “I do not believe tax increases are the right path for the state of Washington.” Since that time tax revenue increased significantly due to tax increases, inflation and other factors.
Overall, since 2013, Washington’s tax burden increased significantly, and tax competitiveness declined dramatically.
