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Republican leaders criticize last-minute tax package, warn of economic harm
Summary
House and Senate Republican leaders told reporters that late-session tax changes pushed by House Democrats are procedurally rushed and substantively risky, saying new levies and sales taxes on services could raise costs for health care, housing and local levies and risk a McCleary-era funding imbalance.
Drew, speaking for House Republicans, told reporters that the biggest issue in the closing days of the 2025 legislative session is the state budget and accompanying tax proposals, calling Democrats' actions "the most reckless taxing spree I could possibly imagine." He said the packages being advanced have been changed on the fly, lack fiscal notes and will shift costs to consumers in the form of higher housing and health-care prices.
John Brock, the Senate Republican leader, echoed the warning and said his caucus views the public-safety bill (HB 2015) as a positive step only if the budget actually contains the money to fund it. Brock said uncertainty about how revenue bills will land with the governor could determine whether a special session is needed.
Why it matters: Republican leaders argued that the combination of sizable state tax proposals and additional local levies—figures discussed ranged from several billion to more than $10 billion in new revenue over multiyear windows—could destabilize the state economy and force businesses to plan exit strategies. They specifically singled out proposals to expand sales taxes to service categories and to add new levies that would raise local property-tax burdens.
What Republicans described: Drew and other speakers said a bill passed to the House floor this week (a B&O-style measure) lacked a fiscal note at the time of the House vote, and they described committee-level "striking amendments" introduced only hours before committee action. "We have no idea who these taxes are hitting, how much money is raising," Drew said, and he warned that sales taxes on categories such as temporary staffing and custom software would ultimately raise health-care costs because hospitals and clinics rely heavily on those services.
Education and levies: Speakers warned that a proposed levy-equalization policy would grow local levies and, they said, risk a renewed McCleary-style litigation over the state's education funding by increasing reliance on local revenue rather than state investment. Brock referenced estimates that local impacts could total billions over the next decade.
Process complaints and governor's role: Multiple Republican speakers criticized the timeline and transparency of the Democrats' approach, saying late changes prevented meaningful amendment and public input. They said the governor's reaction to the final package could result in a veto and potentially send lawmakers back for a special session if leaders do not lower spending or revenue targets.
Quotes: "Democrats have engaged in the most reckless taxing spree I could possibly imagine," Drew said. Brock added that the package's ultimate effect depends on whether the budget includes funding and whether the governor will sign the resulting bills.
Next steps: Republican leaders said they would review the final text of revenue and spending bills as they emerge, press for amendments to remove emergency clauses where appropriate, and consider opposing transportation and revenue packages they believe rely too heavily on new taxes. They urged slowing the process to allow public hearings and clearer fiscal analysis rather than rushing votes in the last days of session.
Ending: The press availability concluded with leaders repeating their call for more transparency and expressing concern that the current approach could push residents and businesses to consider leaving the state.
