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Reading: Washington Policy Center – They Keep Raising Payroll Taxes | Elizabeth New
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VideoWashington Policy Center

Washington Policy Center – They Keep Raising Payroll Taxes | Elizabeth New

Last updated: January 31, 2026 6:53 am
Published January 27, 2026
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Washington Policy On The Go is WPC’s bi-weekly (weekly during the legislative session) virtual lunchtime event series featuring center directors and guests to inform you on the latest in Washington State policy research and analysis. In this video, Elizabeth New informs us on the latest payroll tax increases the state is trying to enact, as well as more legislation that would drive up health care costs..

If you find our videos useful, consider making a donation! We receive government funds nor make ad or sponsor revenue from our videos and rely on generous contributions from individuals like you! Donations to WPC are tax-deductible as allowed by law. Consider supporting us at https://washingtonpolicy.org/giveyt/

00:00 – Introduction
02:52 – HB 2100 explained: $125K payroll tax
04:59 – Seattle JumpStart comparison, job movement risk
06:23 – Health care impact, proposed exemptions/substitute
07:43 – “It worked in Seattle?” revenue vs expectations
09:43 – Where HB 2100 money goes: general fund split
12:30 – “Taxes broaden over time” income-tax analogy
13:43 – SJR 8206 language, litigation/definitions risk
17:46 – Universal system path: rationing, waitlists concerns
19:28 – Medicaid underpayment cost-shift explained
26:06 – Hearing/testimony logistics, how to engage
30:18 – SB 5292 introduced
32:16 – PFML usage skew: who benefits most
37:08 – Q&A: gig/out-of-state work, exemptions
41:11 – Positive bills: licensure compact, reforms

Bills mentioned in this video:

Bills mentioned in this video (2025–2026 session), in order:

HB 2100, to impose a new employer payroll tax on workers making over $125,000 (modeled after Seattle’s JumpStart) that would function as a hidden tax on wages and could push jobs/workers out of state: https://app.leg.wa.gov/billsummary/?BillNumber=2100&Year=2025

SJR 8206, to amend the Washington Constitution to declare a “fundamental right” to affordable, cost-effective, clinically appropriate health care, raising concerns about litigation risk, vague definitions, and accelerating a push toward taxpayer-financed universal health care: https://app.leg.wa.gov/billsummary/?BillNumber=8206&Year=2025

SB 5292, to change how Washington’s Paid Family & Medical Leave payroll tax rate is set, framed in the remarks as a vehicle that could lead to higher rates over time and disproportionately burden lower-income workers: https://app.leg.wa.gov/billsummary/?BillNumber=5292&Year=2025

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