A group of Washington’s top business leaders is warning that proposed new taxes could harm the innovation and tech growth that have helped cities like Bellevue thrive. Local tech leaders say the city’s growth could stall if the tax proposals move forward.
State lawmakers are considering new taxes to help address a projected $13 billion budget shortfall. But leaders from business and tech organizations say raising taxes on local companies could push jobs and innovation out of Washington — and make it harder for startups and small businesses to grow.
The Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Washington Roundtable are urging lawmakers to find alternative ways to balance the budget without increasing costs for local employers.
“We’ve made real progress investing in infrastructure, new technology, and programs that help our communities,” said Raji Subramanian, co-founder and CEO of a stealth AI startup. “But all of that could be undone if these taxes go through. Startups are already struggling to hire and grow. Big tax bills could make it even harder.”
Washington’s tech industry plays a major role in the state economy — particularly in cities like Bellevue, where cloud and AI companies have fueled rapid growth. According to the Seattle Metropolitan Chamber of Commerce, tech jobs now make up nearly 10% of all jobs in the state and account for 22% of all wages paid in Washington.
“Tech and innovation are at the heart of what makes our region successful,” said Rachel Smith, president and CEO of the Seattle Metro Chamber. “We want to keep it that way — and that means making it easier, not harder, to build and grow a business here.”
Bellevue Chamber President and CEO Joe Fain added that the city’s momentum could slow if businesses are hit with higher taxes. “We need policies that support local employers, not make it harder for them to succeed,” he said.
How do you go over a budget by $13 billion dollars? We need to elect new people in this state.