(Image: @scott43ld)
43rd District Rep. Shaun Scott has unveiled his proposal for a new “Washington Wealth Tax” modeled on Seattle’s JumpStart payroll tax that would raise more than $2 billion a year across the state.
Scott said this week his “Well Washington Fund” proposal is needed to counteract the latest budget cuts and federal tax package “passed by Congressional Republicans and Donald Trump.”
Under Scott’s proposal, Washington companies with more than 50 employees, payroll above $7 million, and gross receipts of more than $5 million would be taxed 5% on workers who earn more than $125,000 a year.
Seattle employers who already pay the city’s payroll tax would be exempt.
Created to respond to affordable housing and social services needs coming out of the COVID-19 crisis, Seattle’s JumpStart payroll tax has grown into a foundational element of the city’s budget. In 2026, City Hall will lean hard on the tax to stave of cuts amid ongoing economic uncertainty.
Established in 2021 to fund pandemic recovery including housing and small business support, the JumpStart tax applies to Seattle companies with payrolls $7 million and up, on pay to employees making more than $150,000 per year. The tax rate ranges from 0.7% to 2.4% with tiers for various payroll and salary amounts. Late amendments included an expanded 20-year sunset clause that puts the tax in place for two decades. Grocery businesses and independent contractors are exempt.
The Seattle tax was fought tooth and nail by business groups including the city’s chamber of commerce which lost its court battle over the new tax in 2022.
Scott’s proposal would differ from JumpStart, still targeting the largest companies but moving the bar to a lower $125,000 threshold.
Forecasts around the Seattle tax have been notoriously volatile. CHS reported here on the financial headaches the new revenue source can cause under shifting economic forecasts.
Seattle Mayor-elect Katie Wilson, while still on the campaign trail earlier this year, said potential volatility is why the tax should not be depended on for “ongoing operations that depend on stable funding from year to year.”
“Funneling a massive part of JumpStart into the General Fund makes its volatility more of a problem,” Wilson said in March. “It also compromises our ability to address the housing and climate crises and takes away money that was intended for community development and small business support.”
CHS reported earlier this year on Scott’s efforts to grow support for a new wealth tax despite repeated failures by state lawmakers. “We saw wildfire preparedness defunded, we saw reproductive health care defunded, we saw child care and human services defunded in the most recent legislative session. We have to replace that funding. I believe that those are the values of the people of the 43rd LD and certainly Capitol Hill,” Scott said at a forum here in October.
Scott has pointed at strong support for policies that would create new taxes on wealthy individuals and larger companies in Washington.
In 2025, Washington added a capital gains tax that makes the first $1 million in taxable Washington capital gains subject to tax at a rate of 7%. Any amount exceeding $1 million is subject to the 7% tax, plus an additional 2.9%. Around 3,000 filers were hit with the new tax last year, the state says.
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