Taxes Too Low or Spending Beyond Our Means?

For the first time in over a decade, Washington lawmakers must decide how to address a gap between incoming taxes and outgoing spending.

The question they must ask is: Are taxes too low, or is state government spending beyond our means?

Some facts:

In the past decade:

  • Median household income in Washington grew by 58%.1

  • State tax revenues grew by 94%2

  • State spending grew by 114%.3

More about revenue:

  • State tax revenues have grown to record levels.4

  • Tax revenues have grown faster than at any point in recent history.5

  • This revenue growth has been fueled by nearly 50 new taxes and fees.6

  • Over the last four years, this high rate of revenue growth has brought an additional $11.6 billion to the state.7

  • Over the next four years, revenues are expected to slow but still grow by 7.6%.8

  • This rate of growth, which is closer to historical rates of revenue growth, is projected to bring in another $10 billion more in revenue to the state.9

More about spending:

  • Even with this additional $10 billion, outgoing spending is set to outpace incoming revenues by $10 billion to $12 billion over the next four years.10

  • Estimated spending in 2025-27 is about 10% higher than forecasted revenue growth. Estimated spending in 2027–29 is about 7% higher than forecasted revenue growth.11

  • Since 2021, state revenues have grown by 25%, while state spending has grown by nearly 40%.12

Are taxes too low or is state government spending beyond our means?