New House Bill Threatens Jobs and Economic Opportunity in WA State: LIBRE

The LIBRE Initiative, the nation’s leading center-right Latino organization, strongly opposes Washington House Bill 2724 (2025–2026), which proposes the creation of a new state income tax targeting high earners and entrepreneurs.

HB 2724 would impose a 9.9 percent tax on individuals with taxable income exceeding $1 million, with the tax scheduled to take effect in January 2028. Supporters argue the revenue would fund K–12 education, healthcare programs, and tax relief for lower-income households.

However, critics warn that the proposal would do more harm than good for Washington’s economy and working families:

• Higher taxes on top earners and businesses could drive employers and high-wage jobs out of the state.
• Increased tax burdens on small businesses and professionals could translate into higher costs for consumers and reduced investment in local communities.
• New taxes wouldn’t solve budget shortfalls if government spend continues to grow.
• More government spending does not guarantee better outcomes in areas like education and services.
• Source: read here

Juan Martinez Director of Strategic Expansion, for LIBRE, released the following statement:

“Washington’s success has long been built on policies that encourage innovation, investment, and job creation. A new income tax especially one this steep risks driving entrepreneurs, small business owners, and investors out of the state, ultimately shrinking the tax base and reducing economic opportunity for everyone.”

The bill is part of a broader push to restructure Washington’s tax system and was introduced alongside Senate Bill 6346, signaling a renewed effort to revisit long-standing debates over state revenue and taxation. HB 2724 has been referred to the House Finance Committee for further consideration.

LIBRE emphasizes that many Latino–owned businesses and family enterprises aspire to grow into high-earning ventures, and policies that penalize success only discourage potential entrepreneurs from building job-generating businesses.

LIBRE urges lawmakers to reject HB 2724 and pursue solutions that protect Washington’s economic competitiveness while empowering families to achieve the American Dream.

ABOUT LIBRE

The LIBRE Initiative is a non-partisan, non-profit grassroots organization dedicated to empowering the U.S. Hispanic community. We focus on promoting economic freedom, educational opportunities, and a path to prosperity for all. By advocating for policy changes at both the local and national levels, we aim to ensure that the American Dream remains attainable for everyone.