OLYMPIA – With about a month to go before the 2026 legislative session, progressive lawmakers in Olympia rolled out a new revenue proposal Tuesday that targets Washington’s largest employers with a 5% payroll excise tax on wages above $125,000.

For a state long defined by its lack of a personal income tax, the measure, if approved, would mark a notable shift in how Washington raises money. Lawmakers head into the session facing a persistent budget shortfall and federal uncertainty, and Democratic leaders have warned they may need both deeper cuts and additional revenue — despite the $9 billion tax package adopted in 2025.

Sponsored by Seattle Democrats Rep. Shaun Scott and Sen. Rebecca Saldaña, the proposal would levy a 5% tax on employer payroll expenses above $125,000 and would only ap

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