Washington's Tax Death Spiral
and Business Exodus

High taxes and regulations are driving companies and talent out of Washington state—with devastating consequences for everyone left behind.

30,000
Amazon Jobs Lost (3 Months)
38,000+
Total WA Tech Jobs Lost
$1B+
Bezos Tax Savings (FL Move)
#45
Tax Ranking (Out of 50 States)

How This Hits Average Washingtonians

Job Loss Multiplier
4-5×
Every tech job lost means 4-5 service jobs disappear. 30K tech layoffs = 120K+ total jobs at risk.
Budget Deficit
$2.3B
2026 shortfall. $797M in cuts, $1B drained from rainy day fund. Only $1B left in reserves.
Child Care Waitlists
11,000
Families locked out as enrollment frozen at 33K. Parents forced to quit jobs or pay $2K/month.
Healthcare Cut
620,000
Losing Medicaid coverage. Premiums up 21%. Emergency rooms overwhelmed.
Sales Tax Rate
10.55%
Seattle's rate among highest in nation. Property taxes rising to fill revenue gap.
Job Market Collapse
-35%
Drop in Seattle job postings. 2nd worst in nation after San Francisco.
College Budget Cuts
3%
UW/WSU cuts. Higher tuition coming. Fewer classes, larger sizes. Best students leaving.
Homeless Population
16,000+
In King County. Shelter programs being cut as problem accelerates.
Small Business Closures
Rising
Restaurants losing tech worker spending. Retail suffering. "Not worth staying open."

The Gas Tax Crisis: Paying More, Getting Nothing

State Admits Climate Program Fraud
96×
Washington overstated emission reductions by a factor of 96
Claimed: 7.5 million metric tons reduced
Actual: 78,000 metric tons
86% of claimed climate benefits are fake
You're Paying for a Lie
Washington has the 3rd highest gas tax in the nation at 59¢ per gallon (state tax only). Combined with the federal 18.4¢ tax, Washingtonians pay 77.4¢ per gallon in taxes alone—before the Climate Commitment Act adds another estimated 4-13¢.
The math is brutal: Over 90¢ per gallon goes to taxes and fees. For a family driving 15,000 miles per year in a car getting 25 MPG, that's $540+ in gas taxes annually—funding a climate program the state just admitted doesn't work.
1. California
70.9¢
2. Illinois
66.4¢
3. WASHINGTON
59.0¢
4. Pennsylvania
57.6¢
5. Indiana
54.5¢
10. Nevada
43.1¢
15. Oregon
40.3¢
20. Colorado
37.1¢
25. Arizona
29.8¢
30. Tennessee
27.3¢
35. Louisiana
22.0¢
40. Oklahoma
19.0¢
45. New Mexico
18.9¢
48. Mississippi
18.4¢
50. Alaska
8.95¢
National Average
29.15¢
The Bottom Line

Washington ranks #3 in the nation for gas taxes—more than double the national average of 29.15¢.

The Climate Commitment Act was supposed to justify these costs. Instead, the state admits it overstated emission reductions by 96 times.

Washington accounts for less than 0.2% of global emissions. China opens a new coal plant every week—each one producing more carbon than Washington hopes to save in an entire year.

You're paying the 3rd highest gas tax in America for a program that can't prove it works.

Timeline of Decline

Nov 2023
Jeff Bezos Announces Florida Move
Saves $1B+ in taxes by relocating to Miami
2021-2024
Capital Gains Tax Enacted
7% tax on gains over $250K (later increased to 9.9% on gains over $1M)
2025 Session
$9.4B in New Taxes Passed
Estate tax lowered to $3M, tech surcharge to 7.5%, gas tax up 6¢, service taxes added
May-Sep 2025
Microsoft Layoffs Begin
3,202 WA jobs cut across multiple rounds
Oct 28, 2025
Amazon Announces 14,000 Cuts
1,887 Seattle jobs via WARN notice
Jan 2026
Startup Exit Tax Proposed
HB 2292 & SB 6229 would tax QSBS gains, called "catastrophic" by investors
Jan 7, 2026
Climate Program Fraud Exposed
State admits overstating emission reductions by 96x—86% of claimed benefits are fake
Jan 28, 2026
Amazon Announces 16,000 More Cuts
Largest layoffs in Amazon history - 30,000 jobs in 3 months
Jan 2026
$2.3B Budget Deficit Revealed
Nine months after $9.4B tax increase, state faces massive shortfall

Major Company Layoffs

Amazon
30,000
14K Oct 2025 + 16K Jan 2026. Largest in company history.
Microsoft
3,202
WA jobs cut May-Sep 2025 across multiple rounds.
Boeing
2,595
2,199 by Jan 17 + 396 by Feb 21, 2026.
Starbucks
1,100
Tech workers impacted in corporate restructure.
Oracle
262
161 in Aug + 101 in Sep 2025.
Salesforce
93
Sep 2025 cuts.

The Downward Spiral

High taxes drive out companies and high-earners
↓
Massive layoffs (30K+ tech jobs)
↓
Service economy collapses (120K+ jobs at risk)
↓
Tax revenue plummets ($2.3B deficit)
↓
Government cuts services ($797M in cuts)
↓
Quality of life declines for everyone
↓
More people and businesses leave
CYCLE REPEATS AND ACCELERATES

Tax Increases

Capital Gains Tax
9.9%
Enacted - On gains over $1M
Tech Sector Surcharge
7.5%
Enacted - Jan 1, 2026
Estate Tax Threshold
$3M
Enacted - Lowered from $4M
Gas Tax Increase
+6¢
Enacted - July 2025
Seattle Sales Tax
10.55%
Enacted - Jan 1, 2026
Service Taxes
New
Enacted - Oct 1, 2025
Startup Exit Tax (QSBS)
9.9%
Proposed - HB 2292/SB 6229
Millionaire Income Tax
9.9%
Proposed - Not until 2029

What People Are Saying

"I have, frankly, never been more worried about the future of the tech sector in Washington state as I am today. Unfortunately, if you make jobs more expensive, it becomes harder to keep jobs or to grow jobs here."
Brad Smith, President, Microsoft (March 2025)
"When the costs of raw goods and minimum wage labor increase, prices to our guests have to increase, which coupled with the effect of these proposed tax increases, will cripple our revenue. Guests will just stop coming. At some point, it's not going to be worth staying open."
Elaina Morris, CEO, Ascend Hospitality Group (April 2025)
"Tech executives from Microsoft and Amazon are bolting to Las Vegas. Nevada realtors are closing deals on $8 million-plus homes for Seattle transplants drawn by zero state income or capital gains taxes."
Bloomberg (March 2025)
"Washington loses one taxpayer on net every 30 minutes based on 2021-2022 flows, ranking it among the top states for frequent net taxpayer losses."
National Taxpayers Union Foundation (2025)
"The startup exit tax proposals are catastrophic for both founders and early employees."
Leslie Feinzaig, Venture Investor, Graham & Walker (January 2026)
"So what failed in France is now being proposed for Washington."
Brad Smith on proposed wealth tax (March 2025)
"Tax income to the state is declining as the people moving here make less money and pay less taxes than the ones that are leaving."
Washington Policy Center (January 2026)
"Despite the fact that we talk about all the time that we are leaders in fighting climate change, our climate policies aren't really very effective. This report was very indicative that what we're being told about our climate policy doesn't match the results of the real world."
Todd Myers, Washington Policy Center (January 2026)

Sources & Verification

Government & Official Data
WA Employment Security Department (Layoff Data, WARN Notices) • WA Department of Revenue (Tax Data) • WA Office of Financial Management (Budget Data) • WA Department of Commerce (Climate Data) • WA Department of Ecology (Emissions Data) • IRS Migration Data • Tax Foundation (State Rankings, Gas Tax Data) • US Energy Information Administration (Fuel Tax Rates) • US Census Bureau (Migration Data) • King County Data
News & Analysis
CNBC • Bloomberg • Reuters • Seattle Times • GeekWire • KIRO 7 • KOMO News • King 5 • CBS News • Washington Post • Fortune • OPB • Fox Business • Washington State Standard • The Urbanist • Spokesman-Review • MyNorthwest • Newsweek
Research & Policy
Washington Policy Center • SmartAsset Migration Studies • Holland & Knight Legal Analysis • Bay Area Council Economic Institute (Job Multiplier Research) • Upjohn Institute (Employment Multipliers) • National Taxpayers Union Foundation • Institute for Policy Studies • NerdWallet Tax Analysis
Business & Industry
Association of Washington Business • Seattle Metropolitan Chamber of Commerce • Bellevue Chamber of Commerce • Washington Roundtable • Restaurant Association Metropolitan Washington • Industry Testimony to WA Legislature
Key Research Citations
Bay Area Council (2012): "Technology Works: High-Tech Employment and Wages" - 4.3 job multiplier • Enrico Moretti, UC Berkeley: "The New Geography of Jobs" - Innovation job multipliers • Upjohn Institute (2019): "Local Job Multipliers in the United States" - Conservative multiplier estimates • Tax Foundation: "2025 Gas Taxes by State" - Comprehensive fuel tax data
Help Share the Truth
I'm just a hard-working Washingtonian who wants to help the rest of our state understand how badly our legislators are going to ruin Washington. If you love this state, vote out Democrat tax policies. Your life—our lives—will get MORE expensive, not less. It will ruin our state.
Support This Work
This research was compiled by an independent Washington resident. All data is sourced from publicly available government records, news reports, and research institutions. Donations help cover time and hosting costs to keep this information freely available.