Republican leaders warn Democratic budget proposals would raise broad taxes, risk jobs and housing affordability

Republican leaders in the Washington Legislature used a press availability to sharply criticize Democratic budget proposals, arguing the plans would rely on what they described as broad new taxes that threaten jobs and housing affordability.

House Republican Leader Drew Stokesberry said the state is in the "last 3 weeks of session" and warned of "potentially massive" tax increases, naming a proposed boost to the B&O (business-and-occupation) tax and an "intangibles" or innovation tax that he said would amount to "a literal tax on jobs." "If we are going to add a tax on jobs, you will see less jobs in Washington and more jobs in Florida and Texas and Idaho and Nevada," Stokesberry said.

Senate Republican Leader John Braun raised additional concerns about measures he said would increase costs for households and businesses. Braun flagged a low-carbon fuel standard he said could raise fuel costs by about $0.40 by 2030 and a bill he called "hydrocarbons" legislation that he said would add costs to food processing and retail. He also warned about proposed property-tax changes that, in his description, would effectively remove caps and could allow higher annual increases tied to inflation and population growth.

Both leaders said they were especially frustrated by the budget process. Braun said going into a conference committee risks secrecy and prevents floor amendments, leaving lawmakers and the public without regular, visible milestones. "There's no way that they're at least so far signaling ... we've decided on X or we've decided against X," he said, arguing instead for passing budgets back and forth at milestones so the public can see progress.

Republicans repeatedly urged adherence to Governor Jay Inslee's publicly stated priorities, including avoiding tapping the rainy-day fund and not assuming higher-than-anticipated revenue. Stokesberry said those constraints make a path to a balanced budget without a large tax increase feasible and cautioned that attempting to override the governor's nonnegotiables could precipitate a costly special session.

The leaders also criticized several bills that moved in committee, including a rent-control measure and a proposal to pay unemployment insurance to striking workers; Stokesberry grouped those items with short-term rental taxes as examples of what he called unnecessary "joy taxes." Braun described a version of the rent-cap debate he considered harmful to investment and highlighted a striker amendment that removed price limits and instead focused on tenant notification requirements as a potentially preferable alternative.

The press availability included questions about tariffs, capital-gains revenue volatility and committee amendment processes. Senators and representatives from agricultural districts said they were adopting a "wait and see" approach to national tariffs, while Republicans reiterated longstanding objections to relying on capital-gains revenue because of its volatility.

The leaders gave reporters roughly 20 days to influence outcomes before the legislative session adjourns. "We can do it in a way that doesn't raise taxes on regular Washingtonians and doesn't devastate the state's economy," Stokesberry said.

The availability closed after brief final remarks; Braun thanked reporters for their time.