Starting July 1, Washington families, seniors and small businesses will begin feeling the effects of the largest tax increase in state history. Passed by a Democratic majority in Olympia — with Gov. Bob Ferguson at the helm— families and seniors in Washington are going to foot the bill. Despite the massive tax increases, our state budget is already in trouble due to overspending and years of fiscal mismanagement.
Make no mistake, these are homegrown decisions made in our own backyard.
For weeks, state leaders have pointed fingers at the “other Washington” instead of confronting the harmful impacts of their own policies. But working parents, seniors on fixed incomes, young professionals just starting their careers and small business owners aren’t interested in political blame games. They’re watching their cost-of-living skyrocket, and the consequences are real.
Sadly, for many Washingtonians, the dream of homeownership and retirement is becoming out of reach. It doesn’t have to be this way.
Let’s start at the gas pump. Washington already ranks among the top three most expensive states for gasoline, averaging around $4.45 per gallon — well above the national average of $3.23. On July 1, a new 6-cent-per-gallon gas tax takes effect under Senate Bill 5801, with automatic annual increases tied to inflation. That means drivers in Washington — especially commuters, students and families — will soon be paying about $1.20 more per gallon than the average American.
The burden at the grocery store is even more severe. Washington households now spend an average of $10,200 a year on groceries — nearly 25% more than the national average of $8,100. According to the WAFOOD survey, 78% of households confirmed monthly increases in their grocery costs. In comparison, 70% say they’re forced to cut back on meals or reduce the quality of their food as a result.
The dream of homeownership for our young men and women, who are starting a career in the trades or graduating from college, is also fading away. Not only is inventory scarce due to overburdensome building regulations, but the majority paved the way for higher property taxes that price future generations out of our communities. According to recent statistics, Washingtonians pay up to 60% more for homes than the national average. Washington homeowners must work nearly 14 days a month to pay their mortgage.
The Legislature’s recent taxes will only make things worse. Increased taxes on health care facilities and child care will drive up the cost of essential services and put a strain on household budgets.
The expansion of sales taxes on services, higher fuel and diesel prices, and the creation of an Extended Producer Responsibility program under Senate Bill 5284 are expected to further increase food costs, adding hundreds of millions of dollars in additional expenses to our grocery bills.
