Legislators Admit Millionaire's Tax Will Trickle Down | Mark Harmsworth & Ryan Frost

Washington Policy On The Go is WPC's bi-weekly (weekly during the legislative session) virtual lunchtime event series featuring center directors and guests to inform you on the latest in Washington State policy research and analysis. In this video, Small Business Director Mark Harmsworth and Budget & Tax Director Ryan Frost discuss how the state ended up with deficits, how the tax expansion will reach more than just the rich, and how businesses are struggling to keep up.

If you find our videos useful, consider making a donation! We receive government funds nor make ad or sponsor revenue from our videos and rely on generous contributions from individuals like you! Consider supporting us at https://washingtonpolicy.org/giveyt/

00:00 - Introduction
00:25 - 2026 session, $2.3B shortfall
01:34 - COVID emergency spending never stopped
03:33 - Income tax pitch and small business impact
05:58 - Threshold drops over time
07:20 - HB 2097 county B&O tax authority
08:52 - HB 2270 tourism tax “slippery slope”
10:46 - Credit ratings, higher borrowing costs
12:28 - Income tax ballot vs emergency clause
14:27 - Vacancy tax proposal
15:46 - Public grocery store option, state bank
18:27 - ICE/employer mandate concerns, compliance burden
20:25 - “Good news” bills
21:45 - 49 tax bills, budget “not treated like emergency”
23:02 - Initiative 2111, “easily made, easily broken”
24:33 - Budget growth and legislator pay
26:25 - Legislator security bill idea
28:12 - Capital gains changes, property tax cap chatter
29:38 - Q&A, how to fight income tax, Feb 9 cutoff

Visit our homepage for the latest Washington news: https://washingtonpolicy.org
Sign up for our FREE newsletter: https://washingtonpolicy.org/signup
Follow us on our social platforms! Facebook: / washington.policy.center | X: https://x.com/wapolicycenter | Instagram: / washingtonpolicy | TikTok: / washingtonpolicy