The truth about Washington’s revenue shortfall
During the 2025 legislative session, Washington state lawmakers face a budget shortfall that threatens funding for the public programs we all rely on. Two key things to know about this budget shortfall are:
- It is in large part a direct result of our state’s inequitable tax code that relies on those with the least to pay the most. Revenue has failed to meet community needs because lawmakers are not requiring that millionaires, billionaires, and highly profitable corporations pay their share of taxes. As a result, important programs are chronically underfunded, like schools, child care, and mental and behavioral health programs.
- It has a straightforward solution: Lawmakers can generate equitable new forms of revenue. This session, they should pass a tax on large financial assets, close tax loopholes for employers of high earners, and reform the business & occupation tax.
Lawmakers must also reject short-sighted budget cuts that will lead to job losses and diminish funding for programs that allow us all to thrive, like parks, public transportation, and public health. And they must reject proposals to raise inequitable taxes – like the sales tax – that disproportionately affect people already struggling to make ends meet.
The people of Washington want equitable, progressive taxes, like the capital gains tax that voters overwhelmingly upheld on the ballot in November.
Take a look at our analysis that highlights the need for lawmakers to fix our state’s inequitable tax code and avoid harmful budget cuts:
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Click on image to enlarge.
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Click on image to enlarge.
