REDMOND, Wash. — A public hearing is set to take place in Olympia on Thursday regarding a proposed payroll tax on large companies, such as Microsoft, in Washington state.
Supporters of the tax argue it is necessary to compensate for an anticipated loss of up to $51 billion in federal Medicaid funding over the next decade. The bill, which targets companies with salaries more than $125,000 annually, aims to generate more than $5 billion per biennium.
The bill defines a large company as one with more than $5 million in gross receipts.
“The Well Washington Fund is about investing in critical silos of public sector spending at the same time that the Trump administration is defunding them,” said State Rep. Shaun Scott.
Seattle already imposes a similar tax, so companies within the city would be exempt.
Opponents, including Chris Corry, deputy leader of the state House Republicans, warn that the tax could drive businesses and jobs out of the state.
“We’re going to end up removing our tax base, like the people that are actually contributing to our economy are going to be leaving, and that’s going to create bigger problems in the future,” said Cory.
Microsoft has previously opposed the idea.
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If the proposal gains traction and becomes law, large businesses would be required to start paying the new payroll tax on July 1.
