Statewide payroll tax proposal draws support, opposition in Olympia, WA

A proposed statewide payroll tax on salaries above $125,000 drew testimony in Olympia this week, with supporters saying it would generate new revenue for state services and opponents warning it could hurt hiring and raise consumer costs. House Bill 2100, sponsored by Rep. Shaun Scott of Seattle, would levy a 5% tax and is modeled after Seattle’s existing payroll tax. Backers argued the Seattle program has produced growing revenue, while business groups said a statewide version could reach beyond large corporations and affect employers across multiple industries.