Too often, elected officials overlook the cumulative costs of regulations, taxes and fees on taxpayers. However, those added costs come back to bite them hard when people pack up and move, businesses close, or take matters into their own hands and pass an initiative or referendum.
Consider what has happened in high tax and cost of living states, such as California, New York, Illinois, and Connecticut.
In 2023, the National Association of Realtors broke down migration data from the U.S. Census Bureau. Florida, Texas, and the Carolinas had the biggest influx of new domestic residents (people moving from other states), while New Jersey, Illinois, New York and California lost the most people. Florida was also the fastest growing state in 2022 (+1.9%), while New York shrank the most (-0.9%).
Before the Covid-19 pandemic, Connecticut lost the equivalent of 1.6% of its annual adjusted gross income, as the people who moved out had an average income of $122,000, which was 26% higher than those migrating in. “Leavers” outnumbered “stayers” by a five-to-four margin.
As a result of recent legislative actions, including the one recently concluded on April 27, tax and fee increases by local governments are rapidly making Washington unaffordable.
“Washington’s tax burden has risen sharply since 2013, despite prior commitments to avoid tax increases, with the state budget growing 51% and property tax collections increasing by 98%,” Washington Policy Center’s Todd Myers said. The state’s business tax climate has deteriorated significantly, falling from sixth best in 2014 to fifth worst in 2025, discouraging new business creation.
This year’s legislature approved unemployment benefits for strikers, funded by taxes on employers. The gas tax increased by six cents per gallon. Capital gains tax broadened, fees raised, and certain sales tax exemptions eliminated.
The exact total in new taxes and fees will be determined by Gov. Bob Ferguson who must either approve or veto the measures.
At the local level, cities and counties increased taxes and fees as well.
For example, last summer, the Seattle City Council unanimously approved a $1.55 billion transportation levy. Under the new levy, the average homeowner would pay $499 per year, which is $18.58 per month more than the expiring levy, KING 5 News reported. The estimated monthly tax bill is based on the median value of a home in Seattle, which is about $804,000.
Cities like Vancouver raised taxes on utilities and services such as water, electricity, garbage collection, cell phones, natural gas, parking and cable television. Adding $2 or $3 to each monthly bill may not seem much, but cumulatively when combined with inflation, these extra charges can significantly impact those with fixed incomes.
Previous tax increases have caused citizens to relocate and led to various initiatives. In 1993, a state tax increase resulted in the approval of I-601, which imposed limits on state spending. The state’s Supreme Court reversed this measure in 2013.
Twenty years ago, voters approved a $30 car tab initiative in response to high license fees. Although the courts invalidated the initiative on a technicality, Gov. Gary Locke and lawmakers immediately reinstated the law.
Here is the point. While politicians may earnestly believe their actions will have no repercussions, they do. When cumulative taxes and costs of living exceed what people can afford, they either move or seek relief by initiative or referendum.
Unfortunately, school boards, cities, counties, state legislatures and Congress overlook the cumulative impact of their collective actions — but there is a tipping point. Politicians can justify any tax, fee or regulation, but this often overlooks taxpayers’ affordability.
The issue is not which tax or fee increases. It is about the total impact on taxpayers, businesses, and the family budget. It’s about affordability.
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Don C. Brunell is a business analyst, writer and columnist. He is a former president of the Association of Washington Business, the state’s oldest and largest business organization, and lives in Vancouver. Contact thebrunells@msn.com.
