Gov. Bob Ferguson Deems New Dem Tax Plan ‘Too Risky’ as Federal Uncertainty Looms

Governor Bob Ferguson stated on Thursday that the recent revenue proposal from the House and Senate Democrats, aimed at generating approximately $12 billion over four years, is “too risky.”

According to the governor, from his perspective, the new plan does not adequately ready Washington for an upcoming crisis, particularly with the ongoing reductions in federal funding, programs, and employment under President Donald Trump’s administration.

I appreciate the efforts of the lawmakers as they help us manage a budget that has a $16 billion deficit,” he stated on April 17. “Although our current financial position is tough, it could worsen significantly due to further reductions and turmoil caused by the Trump Administration. We need to protect Washington against those threats.

Earlier this month,
Ferguson stated he wouldn’t approve it.
Due to their heavy dependence on increased taxation, House and Senate lawmakers’ preliminary budget plans face criticism.

Washington Democrats this week revealed an updated tax pitch. Although Ferguson had shot down their initial “untested” wealth-tax measure

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a crucial element of their starting budgets

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The updated revenue plans continue to focus on the state’s richest inhabitants by aiming to
Make capital gains and inheritance taxes more progressive.
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Their financial strategies encompass additional taxation concepts as well, with several aimed at boosting business, occupational, and property taxes.

Republicans have consistently maintained that the budget issue can be resolved without increasing taxes, while business leaders contend that the leading party’s plans would stifle innovation and job creation.

However, proponents of a progressive revenue system argue that the state’s tax code is both outdated and unjust. They believe that the financial load should be transferred from the working class to the wealthiest individuals in the state.

On Thursday, Ferguson stated that 28% of Washington’s budget consists of federal money, which includes substantial amounts allocated to areas such as K-12 education, Medicaid, disaster relief, and child services among others. He pointed out that funding has been consistently withheld, put on hold, and rescinded by both the presidential administration and Special Government Employee Elon Musk from the Department of Government Efficiency.

Just last week, the
Federal Emergency Management Agency
rejected Washington’s request for federal aid to assist with repairs caused by November’s bomb cyclone, he pointed out. The federal department did not provide a rationale for this rejection, despite the state meeting all the necessary conditions.

He additionally mentioned the Trump administration’s effort to cut $160 million from public health funds, along with imposing tariffs that Ferguson noted would disproportionately affect trade-reliant Washington state.

We have to make sure that Washington remains financially robust enough to withstand further budget reductions and harmful economic strategies implemented by a Trump administration that uses funding as a tool for punishment against dissenters, compelling them to compromise their principles,” Ferguson stated. “A well-balanced strategy is necessary, incorporating an appropriate level of progressive taxation along with measures aimed at decreasing expenditures.

Ferguson did provide some hope for lawmakers, however. He mentioned that they have advanced with their new proposals and have been working towards reforming the state’s regressive tax structure. Additionally, he admitted that they have moved away from the initial wealth-tax idea.

However, Ferguson stays mum regarding which tax proposals, if any, he would endorse. Additionally, he has not mentioned whether there is a specific revenue target, presumably below $12 billion, toward which they should aspire.

Both Democratic and Republican leaders appear to have been left out of the loop as well.

On Thursday afternoon, House Speaker Laurie Jinkins stated that she had not yet discussed the Democrats’ tax proposals with the governor or his team. However, she mentioned that a meeting was planned for them at a later time.

So I anticipate hearing from him at that point,” stated the Tacoma Democrat. “I am hopeful that he will share both his preferences and dislikes. However, I have been looking forward to getting feedback from him regarding revenue-related matters, and I would be thrilled to receive such input.

Senator John Braun, the minority leader from Centralia, stated on Thursday morning that Governor Jay Inslee has not shared his stance on the proposed taxes during discussions with Republican leaders. “He isn’t revealing anything to us in private that we haven’t heard him say publicly,” Braun noted.

Braun mentioned that he is not certain whether the governor feels at ease with the degree of taxation proposed by the Democrats.

“I can’t predict where the governor will ultimately land,” Braun stated.

The Senate Republican budget leaders concur with Ferguson’s assessment that the $12 billion tax plan remains excessively large. Senator Chris Gildon from Puyallup, who leads the Republicans on the budget, stated in a release that this viewpoint holds true irrespective of which individual occupies the presidency.

“If we genuinely wish our state to be prepared for any kind of financial instability, let’s adopt a new budget that entirely eliminates tax hikes — regardless of whether these taxes are ‘progressive’ or otherwise,” he stated.

Gildon mentioned that his caucus’s plan, called the “
$ave Washington budget
The optimal response to Ferguson’s worries is partly due to the fact that it does not increase taxes and simultaneously maintains the state’s emergency savings fund.

Senator Nikki Torres, the top Republican budget leader in the Senate, described Ferguson’s comments as “timely.” Nevertheless, she respectfully disagrees with the notion that advancements have been made regarding Washington’s regressive tax structure. Torres points out that Democratic proposals include hikes in both property taxes and sales taxes.

“We consider any additional taxes to be perilous,” stated the Pasco Republican. “The key issue at hand is whether Democratic lawmakers will listen to the governor’s advice or persist in their ongoing disagreements with him.”

There are 10 days remaining in the 2025 legislative session. Legislators must approve a revenue plan along with the corresponding budget before they conclude their work on April 27.