OLYMPIA, Wash. – A new proposal called the ‘Well Washington Fund’ was introduced in this year’s legislative session, which aims to impose a 5% tax on payroll expenses for companies with over 50 workers earning more than $125,000 annually.
The proposal is sponsored by State Democrats, and is expected to generate about $2.2 billion a year, if enacted. Representative Shaun Scott of Seattle explained the purpose of the fund.
“This is a new dedicated account, it will be guided by subject matter experts who study the effects of federal austerity budgeting and they will advise the state legislature on key investments to make to keep Washington healthy, whole, and well in the face of a federal divestment by Washington D.C.,” Scott said.
Initially introduced in the Senate in March, the proposal did not pass out of committee. Washington Roundtable, a “nonprofit organization comprised of senior executives of major private sector employers in Washington state,” expressed concerns over the proposal, noting the largest tax increase in state history and its potential impact on families.
Rachel Smith, President of Washington Roundtable, raised questions about the proposal’s implications.
“How does this fit with other proposals we might hear from this legislative session?” Smith said. “It feels like there’s still a lot of work to do to understand what this proposal would do, both from an impact perspective of who the tax affects and from an impact perspective of what the tax would fund.”
For the sake of transparency, it’s worth noting that Betsy Cowles, a board member for Washington Roundtable, is associated with NonStop Local KHQ, owned by the Cowles Company.
Representative Scott argues that the proposal is essential for safeguarding services in the state and promoting fairness. The 2026 legislative session is set to begin on January 12.
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