House Bill 2100 (HB 2100) seeks to impose a 5% excise tax on medium and large companies for the portion of employee payroll expenses exceeding $125,000 annually per worker (tied to the federal additional Medicare tax threshold).
Sponsored by Rep. Shaun Scott (D-Seattle), the bill targets firms with more than 50 employees, over $7 million in annual payroll, and gross receipts above $5 million. Employers would pay the tax, prohibited from passing costs to workers, with exemptions for smaller businesses.
Revenue would initially flow to the state general fund, then (from July 2027) allocate 51% to a new Well Washington fund to support health care, education, housing, energy, and assistance programs.
The bill has Democratic cosponsors and union backing, positioning it as a response to corporate tax benefits and economic pressures.
The Washington Policy Center views the legislation as an extension of Seattle's failed JumpStart payroll tax statewide. It will discourage hiring skilled workers, particularly in the high-tech sector, reduce job growth, and accelerate business/high-earner exodus to lower-tax states, worsening Washington's economic competitiveness without addressing spending issues.
HB 2100 has been scheduled for a hearing on January 22 1:30pm and concerned citizens can express their thoughts here.
