Seattle – Business owners gathered in July for the Association of Washington Businesses (AWB) summit voiced deep concern that a decade of massive tax hikes and expanding regulations is eroding Washington’s historic reputation as an innovation hub. Representatives from small firms, large corporations, and policy makers examined the state’s fiscal trajectory and outlined concrete steps to restore a climate that encourages entrepreneurship.
Tax growth outpaces population and inflation
AWB’s Economic Future Solutions Report shows that Washington’s state budget grew 112% between 2013 and 2025. If spending had risen only at the rate of population growth and inflation, the budget would be roughly $26 billion smaller today. The report argues that this imbalance forces businesses to shoulder an unfair share of the cost.
Businesses consider leaving
In a spring survey, one in four Washington companies said they were contemplating relocation out of state. The same survey highlighted that the state now ranks 8th most regulated in the nation, with half of its rules deemed “excessive” and up to 70% classified as administrative red tape. Business owners described lengthy permit reviews, complex procedures, and rising compliance costs as major barriers to growth.
Calls for budget discipline and tax stability
AWB recommends a strict “no‑new‑tax” policy and a two‑session review period for any tax proposals, giving legislators ample time to assess economic impacts. The group also urges internal budget reviews, clear performance metrics, and the elimination of programs that fail to deliver results. As former Governor Gary Locke noted at the summit, “Government will never have enough money to satisfy everyone’s wish list. We must set priorities and do a few things really well.”
Learning from neighboring states
Idaho’s “zero‑based regulation” model was cited as a promising alternative. Under this approach, state agencies periodically rebuild their regulatory codes from scratch, while the legislature conducts annual reviews. Washington lawmakers are encouraged to adopt a similar framework to cut unnecessary burdens.
Technology as a tool for efficiency
Artificial intelligence offers another avenue for streamlining permitting. The Honolulu Department of Planning and Permitting used AI software to reduce residential building‑permit review times by 70%. AWB suggests Washington explore comparable solutions to accelerate approvals and lower costs for developers.
Economic stakes for Washington families
When businesses leave, jobs disappear and families lose the stability that comes from steady employment. The state’s current tax climate, including $9.4 billion in new taxes imposed in 2025 and a newly enacted state income tax in 2026, creates uncertainty that discourages long‑term investment. By restoring predictability, Washington can keep its innovators at home and continue to fuel the prosperity of its communities.
Next steps
AWB urges legislators to adopt the summit’s recommendations, prioritize budget discipline, and halt further tax increases. With a clear focus on results and a willingness to modernize regulation, the Evergreen State can reclaim its position as a premier destination for entrepreneurs and families alike.
Original reporting: Clark County Today (Vancouver WA) — read the source article.
