'Seattle News Weekly': Controversial payroll tax proposal for WA
‘Seattle News Weekly S1E17’: Budget politics in Olympia
On this episode of Seattle News Weekly, FOX 13's Hana Kim and AJ Janavel discuss budget politics in Olympia, and a tense press conference pushing for higher payroll taxes on Washington's biggest corporations.
SEATTLE - Budget politics in Olympia have made headlines this week, as Rep. Shaun Scott brought attention to a controversial payroll tax proposal at a press conference on Olympia's Capitol steps Tuesday.
On this episode of the "Seattle News Weekly" podcast, FOX 13 Seattle Anchor Hana Kim sits down with Reporter AJ Janavel to discuss the tax proposal along with the broader debate on how to address the state's multi-billion dollar budget shortfall.
The pair immediately dive into Rep. Shaun Scott's proposal for a 5% payroll tax on annual salaries that exceed $125,000.
The revenue goal of this tax is to generate billions of dollars every year by targeting corporations and the biggest employers in Washington state, such as Amazon and Microsoft, to make up the budget deficit.
Big picture view:
In the episode, Kim and Janavel discuss the economic trend that critics cite as a precedent for the proposed payroll tax: Scott's proposal is similar to what Seattle already has in place. The JumpStart Seattle tax from 2020 is applied to large businesses.
Critics say Amazon moved thousands of its jobs to Bellevue after the JumpStart tax was implemented.
Dig deeper:
The podcast further dives into the overall vibe of this week's press conference, which was made up of supporters and reporters, including Janavel.
Kim plays a clip of Rep. Scott dismissing reporters' questions about whether a payroll tax would motivate businesses not to relocate jobs, especially high-paying ones, as "pro-corporate propaganda," with the argument that corporations are already shedding jobs through their AI investments.
What's next:
During the podcast, Kim and Janavel also discuss a separate press conference that Gov. Ferguson held shortly after Scott's event to discuss election certification and DOJ's lawsuit against Washington for not handing over voter data. Reporters asked Ferguson about Scott's payroll tax proposal.
Ferguson says his focus is trying to balance the budget for next year, in particular, which is in a multi-billion dollar shortfall.
The other side:
The podcast hosts dive into the opposing argument of the taxes on the Republican side of Olympia. Republicans, despite being in the minority in Olympia, argue that the issue is a spending problem, not a revenue problem, as the state's budget and revenue have significantly increased over the last decade.
The podcast played a clip of Rep. Chris Corry who suggested that cuts should have been made to the $4 billion in raises given to large bargaining associations and units in the 2025 budget. He notes, on average, state workers were already the highest paid in 38 out of 39 counties, with King County as the exception but Corry says King County was also close.
The podcast concludes with the impact these budget decisions could have on all Washington residents, affecting affordability and the cost of living in the Evergreen State.
Join us every Thursday to stay up to date on weekly news around the area.
Seattle News Weekly is a podcast that goes in depth and gives context to the stories that matter to the western Washington community. Check back every Thursday for a new episode on your favorite podcast platform, including Spotify, Apple Podcasts, Pandora, Stitcher, Amazon Music, TuneIn and Audible, or YouTube.
The Source: Information in this story came from original FOX 13 Seattle reporting.
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