AFP Joins Washingtonians in Opposition of HB 2100: Payroll Tax Undermines Washington’s Business Climate

Jan 23, 2026 by AFP

Seattle, Washington — Today, Americans for Prosperity (AFP) released the following statement in opposition to House Bill 2100, which would enact a 5% payroll tax on companies with more than 20 employees and over $5 million in sales. A public hearing was held this week, during which more than 12,000 people joined virtually to oppose the tax.

AFP Western Region Director Heather Andrews said:

“Yet again, Washington State lawmakers are considering a tax on employers that will drive job innovation and business out of the Evergreen State. This tax is a punishment for job creators, which will only drive up costs and hurt Washington’s business economy.

“HB 2100 would be detrimental to the state’s economy, especially at a time when Washington is facing the 2025 tax increases—the largest in state history. Lawmakers should be focused on pro-growth policies that will draw businesses and talent here, not drive them away.

“We urge lawmakers to oppose HB 2100 to protect jobs and foster a strong, growing economy that will support Washington’s businesses and families.”

In 2025, Americans for Prosperity unveiled “Taxed Enough Washington”, a campaign highlighting Washington’s proposed burdensome taxes, such as state income tax and payroll taxes on employers.

Washington families and employers are facing a compounding tax burden driven by recently enacted taxes coming online and new proposals under consideration, including a first-in-the-nation state income tax and a payroll excise tax. At the same time, voters have consistently rejected income taxes (11 times), and legislative leaders have publicly acknowledged that so-called “millionaire taxes” will inevitably expand.

Families are experiencing higher fuel, vehicle, and transportation costs, increased consumer fees and excise taxes, and higher business taxes that suppress wages and job growth. The public trust gap is widening as lawmakers promised these taxes would be limited, yet history and current statements indicate otherwise.

Learn more about Taxed Enough Washington HERE.