Washington's Tax Structure Among Most Regressive in US

New letter highlights state's disproportionate tax burden on low-income households

Mar. 16, 2026 at 9:12pm

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A letter to the editor published on clarkcountytoday.com argues that Washington state has one of the most regressive tax structures in the country, with households in the bottom 20% of income paying 13.8% of their total income in taxes, while the wealthiest 1% pay only 4.1%. The letter's author, Anthony Teso, states that only Florida has a more regressive tax system than Washington.

Why it matters

The letter highlights the significant income inequality and disproportionate tax burden faced by low-income households in Washington state, raising concerns about the fairness and sustainability of the state's tax system. This issue has broader implications for funding public services like education, healthcare, and childcare.

The details

Teso's letter points out that while the proposed tax revenue would be earmarked for public education, early learning, childcare, and healthcare, it would also include targeted tax relief for small businesses grossing under $300,000, which make up roughly 65% of all businesses in the state. The letter also notes that independent polling shows majority support for the concept of taxing millionaires, across political affiliations.

  • The letter was published on March 16, 2026.

The players

Anthony Teso

A resident of Camas, Washington who wrote the letter to the editor highlighting the regressive nature of the state's tax structure.

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What they’re saying

“Washington's existing tax system is extraordinarily lopsided. Households in the bottom 20% of income pay 13.8% of their total income in taxes, while those in the top 1% pay only 4.1%. Only Florida has a more regressive tax structure than Washington.”

— Anthony Teso

“Revenue is earmarked for public education, early learning and childcare, and healthcare. Crucially, it's also paired with targeted tax relief: every small business grossing under $300,000 — roughly 65% of all businesses in the state — would be exempt from the B&O tax starting in 2029, which would be the largest small business tax cut in state history.”

— Anthony Teso

“Independent polling shows 54% of Republicans, 52% of Independents, and 71% of Democrats support the concept of taxing millionaires.”

— Anthony Teso

The takeaway

This letter highlights the urgent need for Washington state to reform its regressive tax system, which places a disproportionate burden on low-income households. Addressing this imbalance could help fund critical public services while providing targeted relief to small businesses, potentially garnering broad public support across the political spectrum.