

If you own or operate a business in Washington, I’m curious – when is the last time you have heard the words “thank you”?
Small and medium businesses are the cornerstone of our economy, providing jobs and career pathways for students, along with countless civic contributions. They support local hospitals, schools, parks, the arts, youth sports teams, and much more.
But unfortunately, it’s far too easy to take them for granted and overlook the important role they play in a healthy, functioning society. Even worse, employers too often become the targets of criticism, receiving outsized blame for societal challenges.
So, it may seem simple, but it’s worth saying: thank you. We should tell businesses that more often.
It’s a good place to start, especially as we’re seeing evidence of employers looking to expand outside Washington or move to more business-friendly states. Some have already relocated, while others are being recruited by other states. And many are just frustrated by the state’s growing tax and regulatory burden.
That’s what makes it all the more important to send a clear message: We want businesses here in Washington. We want them to grow and succeed. We don’t want them to leave.
Unfortunately, in recent years, the conversation has focused on revenue growth to fuel higher state spending, paid for by new and higher taxes on employers. Last year, the state Legislature passed the biggest tax increase in state history – $9.4 billion – and lawmakers followed that up by adopting an income tax this year, a monumental shift in state tax policy that’s going to make it harder for businesses to compete.
And the budget challenges aren’t over, with another sizable deficit looming in 2027. It’s likely businesses will be asked again to fill that gap.
As they consider additional taxes, policymakers should keep in mind that Washington businesses already pay over half of all state and local taxes, higher than the national average. And these tax dollars are invested into essential services and back into local economies.
Businesses of all sizes are also critical community partners. Whether it’s funding multimillion-dollar investments in housing and infrastructure or paying for new Little League equipment, their contributions matter.
In the area of job growth, there are troubling warning signs. The Puget Sound region lost 12,900 jobs last year, the largest decline since 2009 outside of the pandemic, according to a report from the Puget Sound Regional Council. Education and health care added jobs, while construction, manufacturing and service sectors saw the steepest losses.
Rather than passing new taxes and expanding the state budget, policymakers should shift to a pro-growth agenda aimed at making Washington a top state for starting, growing and keeping a business. In return, we’ll see good-paying jobs, tax revenue, and civic contributions. Investments go where they are wanted. We should make it hard not to invest here.
Saying thank you doesn’t cost anything or require policy change. It won’t fix the underlying problems with the state’s tax and regulatory system. Those are big questions we’ll need to figure out.
But it’s a start.
Kris Johnson is president of the Association of Washington Business, the state’s chamber of commerce and manufacturers association.
