BusinessReflections

Liars, Crooks, Morons – Who’s Next?

In a way I apologize in advance for doing this to you. In another way, I don’t. Someone actually asked me to do a post on this, so here goes.

People need to know this stuff. Politicians depend upon most of us either not paying attention or buying into the bullshit they’re selling.

In the state of Washington, we have more than our share of those who want government as the be-all, end-all solution to everything. No one wants to pay attention; instead, hand the reins of freedom to those least inclined to protect it. Voters claim to care about who is steering this catastrophe, but they continue to vote for morons, crooks, liars, cheaters, and power mongers. Not a winning combination.

To illustrate the frustration and alarm of many besides myself, look at the following facts:

Washington state budgets by the biennium, meaning their budgets are figured over two years.

Washington state spent about $80 billion in the 2013-15 budget but is set to spend more than $173 billion in 2025-27, a more than 116% increase. Over ten years they doubled their budget and their tax take, with nothing but continuing eroding performance to show their citizens for it.

According to the U.S. Bureau for Labor Statistics inflation calculator, there has been a cumulative price increase of 35.63% since July 2015. According to the Washington state Office of Financial Management, the state population has grown from 7,061,410 to 8,035,700 in the same time period as of 2024, a 13.8% increase. Notable budget increases have been allocated for the following:

  • An increase in Washington State Department of Social and Health Services spending from $9 billion to $25.4 billion, a $15.6 billion or 182.22% increase
  • An increase in Long Term Care spending from $3.8 billion to $12.9 billion, a $9.1 billion or 239.47% increase
  • An increase in General Apportionment spending from $11.4 billion to $22.6 billion, a $11.2 billion or 98.25% increase
  • An increase in Public Schools spending from $17.7 billion to $37.4 billion, a $19.7 billion or 111.3% increase
  • An increase in Washington State Health Care Authority from $16.4 billion to $38 billion, a $21.6 billion or 131.71% increase

Can you say, out of control Welfare State?

During the 2025 state legislative session, the state legislature enacted the following tax increases:

  • Increased the business and occupation tax rate for most businesses from 1.2% to 1.5%, which is expected to generate $2 billion during the 2025-27 biennium. This tax is based upon the gross revenue of a business, whether or not the business makes a profit.
  • Expanded the retail sales tax base to include additional services, expected to generate $2.9 billion over the 2025-27 biennium and $4.7 billion over four years, making it the largest single revenue source among new taxes and fees
  • A 50% increase in over 40 liquor-related fees. Washington already had liquor taxes thirty times higher than the next highest state. Yes, you read that right.
  • Retroactively created a progressive rate structure for the existing 7% tax on income from the sale of capital gains above $270,000, with an additional 2.9% tax, 9.9% total, on gains exceeding $1 million, expected to generate $282 million over the 2025-27 biennium and $561 million over four years. The liberal state supreme court conveniently ignored the definition of income by calling this an excise tax, thereby skirting the state constitution prohibiting a graduated income tax.
  • Increased the estate tax rate for estates over $9 million from 20 to 35%
  • Doubled the rental car sales tax from 5.9% to 11.9% in 2026
  • Added an 8% luxury tax on the sale, lease, or transfer of vehicles exceeding $100,000. That’s in addition to the 8.8% to 10.6% sales tax, depending on what city you live in.
  • Created a B&O tax on the rental or lease of self-storage units at 1.5 % or 1.75 %, depending on transaction cost
  • Increased the cost of the yearly Discover Pass for state parks by 50%
  • Expanded the tobacco tax to include nicotine pouches. The tobacco tax is 95% of the sale price.
  • Raised hunting and fishing license fees by 38% and increased the cost of a combination fishing license from $45.50 to $62.49
  • Increased taxes on health insurance. Your health insurance just got more expensive. How’s that for a sympathetic government?
  • Raised the cap on annual local property tax increases from 1% to 3%
  • Imposed a 10% excise tax on duty-free stores (duty-free, yeah, right)
  • A new ticket fee for sporting events and concerts
  • College grant/scholarship adjustments: Increased college tuition every year, starting with $700 during the freshman year to $900 during the senior year, totaling about $3,000 per student.

This doesn’t include previous governor Jay Inslee’s big lie about his pet carbon credit tax, that imposes an average tax of more than 56 cents per gallon on gasoline. It’s refigured every quarter. That creates a total gasoline tax in Washington state of at least a $1.47 a gallon.

Now let’s get on to what they did this year. The best part: they passed a 9.9% income tax on earners who make more than $1 million. They claim the tax only applies to millionaires, but they refused to add any amendments that might limit the applicability of the income tax to lower incomes in the future. That tells you everything about these liberal liars.

Once again, as a tax that is not equally apportioned among all citizens, it blatantly violates the state constitution. They conveniently ignored that and the record number of voters calling and emailing the legislative hotline to voice their opposition. They also attempted to circumvent any vote of the people to nullify the law. Of course, this one’s going to end up in court and no doubt in front of our dubious state supreme court.

Then, they raided the retirement coffers of law enforcement officers and firefighters, re-allocating over $4.5 billion from the fund to the state budget. If I had done that to my employees when I was a business owner, they would have taken everything I have, tossed me in jail and thrown away the key. It’s worse than irresponsible – it’s criminal.

Last, they passed a law creating a non-elected state tribunal to evaluate, with the authority to remove, duly elected county sheriffs. How does a legislature have the authority to remove an elected official over whom they have no jurisdiction, particularly without due process? It’s a blatant usurping of the rights of citizens and their elected local officials. It turns those sheriffs into officials who have to cow to the political wishes of the legislature and its tribunal. This is a power grab, not republican democracy!

Here’s a summary of what they did this year. This isn’t everything, just the lowlights:

  • Taxes on loan interest: Removed the B&O tax deduction for large financial institutions on interest received from certain first mortgage loans.
  • Taxes on coal-fired electricity: Required a coal electricity plant to pay carbon credit tax emission fees as well as a sales tax on coal purchased for use in electric generation.
  • Multiple taxes for local government spending: Permits a new utility tax, new sales taxes, and removes voter-approval requirements for existing affordable housing tax revenues.
  • Insurer taxes: Limited the B&O tax exemption for insurance businesses to the specific insurer that paid the corresponding gross premium taxes and applied this change retroactively to 2019.
  • Cannabis license fees: Increased the fees for cannabis producer, processor and retail licenses.
  • Abortion funding: Imposes a per-member-per-month tax on health insurance plans to fund abortion services. Oops – your insurance premium just went up again thanks to the state.
  • Prescription drugs: Removed a tax exemption for the warehousing and reselling of prescription drugs, adding costs that will be passed on to consumers. There it is again – another increase to your health insurance!
  • Taxing data centers: Removed a sales and use tax exemption for data center equipment, increasing costs and likely hurting jobs.

Are you dizzy yet? Our state is completely out of control. Rich people are leaving, and many more are talking about it. The upper middle class knows these guys are eventually coming for them, too. This state is unwittingly spiraling itself into a tax and spending pit that has no escape.

As much as some think it makes sense, you can’t continue to encumber the most productive, highest producers, and biggest risk takers in your economy with the highest burdens. High risk yields high returns, but only when that high risk works out. Most of the time it does not. When that happens, those high producers absorb the losses that came with taking the risk.

Taking away their investment dollars and their economic safety nets ultimately reduces their ability to take those risks, which in turn adversely affects their productivity, their ability to provide jobs, their income, and their ability to pay the expected taxes. They will move on from this state, further decimating the state’s ability to fund itself. Boeing, Amazon and Starbucks are already positioning themselves to leave, or at least significantly reduce their presence in Washington state. There will be many more.

This is highly destructive behavior. Nothing comes for free. It’s a shame none of these tax mavens understand the basics of business and risk/reward in common sense terms, much less economic ones.

Glad I could ruin your day.

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