By Aaron Allen, The Seattle Medium
Last week, State Representative Shaun Scott (D‑43) unveiled a sweeping payroll tax proposal aimed at raising more than $2 billion annually across Washington state. The initiative, dubbed the Well Washington Fund, is pitched as a safeguard for essential services threatened by what supporters call sharp federal funding cuts under H.R. 1.
Scott launched the proposal at a press conference alongside union leaders, progressive tax coalition members, workers, and housing advocates. Scott portrayed H.R. 1 as “a billionaire giveaway with a bill that lands in the laps of Washington’s working families. It steals from our classrooms, our hospitals, and our housing programs to subsidize champagne dreams for the ultra‑rich. Washington is done footing the tab.”
The Well Washington Fund would levy a 5 percent payroll tax on large employers statewide. The tax applies solely to wages above $125,000 per year and only to companies that meet three thresholds: more than 50 employees, payroll expenses above $7 million, and gross receipts over $5 million. Small businesses, low‑wage workers, and employers already subject to Seattle’s JumpStart tax are exempt. Revenue would flow into the Fund to stabilize Medicaid, education, and human services, with safeguards to prevent employers from passing costs onto workers.
Scott defended the proposal as both a response to widening inequality and a correction to corporate profiteering. “Washington is one of the wealthiest states in the wealthiest nation in human history,” Scott said. “The idea that we can’t afford childcare, transit, or housing is absurd. We can afford all of it when the corporations and ultra‑wealthy who have benefited the most contribute what they owe.” Scott added, “If an employer’s business model only works when executives make millions and everyone else pays for it, that is not a business model, that is exploitation.”
Mike Yestramski, president of the Washington Federation of State Employees, called the bill a turning point for economic fairness.
“Working families are drowning while the wealthiest cannot spare a single drop of their champagne,” Yestramski said. “Well, guess what? That ends with us.”
However, not everyone was persuaded. Seattle Mayor‑elect Katie Wilson warned earlier this year that relying on payroll tax revenue is risky because such funds can fluctuate. Wilson cautioned that diverting a large portion of JumpStart revenues into a statewide fund could undermine local efforts to address housing, climate change, and small business support. Business organizations also raised concerns that corporations might relocate jobs rather than absorb new tax burdens.
Scott dismissed those objections as long‑standing corporate scare tactics.
“Corporate threats of job relocation are as old as capitalism itself,” Scott said. “We’ve seen Amazon and Microsoft cut thousands of jobs long before this bill — not because of taxes, but because of automation and AI. Working people shouldn’t be held hostage to scare tactics.”
Scott framed the Well Washington Fund as part of a broader push to overhaul Washington’s tax code toward greater fairness. His agenda also calls for closing multinational loopholes, implementing a capital‑gains tax on multimillionaires, and expanding the Working Families Tax Credit. The approach aims to distribute fiscal responsibility more equitably and reduce reliance on volatile funding sources.
Proponents argue the timing is critical. With federal funding for healthcare, education, and housing programs under pressure nationwide, the Well Washington Fund offers a potential stabilizing mechanism. This structure, supporters say, ensures that vital services remain funded even as Washington weathers national austerity.
Critics of the proposal counter that a tax based on payroll and high incomes still rests on unpredictable variables such as employment levels and wage distribution. They caution that an economic downturn, layoffs, or wage stagnation could sharply reduce revenue, putting programs the bill is meant to protect at risk. Housing advocates went further, warning that the tax might discourage business investment in areas already facing affordability challenges, potentially undermining efforts to ease housing shortages.
Despite the contested outlook, the push to enact the Well Washington Fund has placed lawmakers, business leaders, and voters at a crossroads. The coming legislative session promises sharp debate over whether to favor what supporters call solidarity and social investment or critics frame as economic stability and business competitiveness.
SCOTT concluded with a message directed at Washington residents statewide.
“Call your legislators. Call your members of Congress. Demand a tax code that reflects our values, not billionaire profits,” said Scott. “A handful of billionaires should not decide the fate of our state – working people should. Together, we can build a Washington where our budget works for all of us.”
