Clark County Businesses Urge Rejection of State Income Tax

Over 30 local companies warn proposed tax could harm small businesses and the broader economy

Published on Mar. 10, 2026

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More than 30 Clark County businesses sent a joint letter to the Washington State Legislature expressing concerns about the proposed state income tax, Senate Bill 6346. The businesses argue the tax could drive companies out of the state, exacerbate talent shortages, and stifle innovation and entrepreneurship, ultimately harming workers and families.

Why it matters

The proposed income tax has faced strong opposition from Washington voters, who have rejected a state income tax 10 times over the decades. Small businesses in Clark County are concerned the tax would disproportionately impact them, forcing job cuts, reduced hours, and delayed expansions.

The details

The letter, signed by over 30 Clark County businesses, urges lawmakers to reject Senate Bill 6346. The businesses argue that for many small firms, income from operations passes directly to personal tax returns, meaning the 9.9% tax rate would effectively impose a steep new burden on business earnings, even when those funds are reinvested rather than taken as personal profit. The businesses warn the tax could force them to cut jobs, reduce hours, or delay expansions, and that it threatens to drive companies out of Washington to more competitive states.

  • On Monday (March 9, 2026), the joint letter was sent to the Washington State Legislature.

The players

Washington State Legislature

The legislative body considering Senate Bill 6346, which would implement a state income tax.

Clark County Businesses

Over 30 small businesses in Clark County, Washington that signed the joint letter opposing the proposed state income tax.

Project 42

An organization working to shed light on issues related to the proposed income tax and engage with "persuadable middle" voters.

Leslie Lewallen

Director of the Clark County Chapter of Future 42, an organization opposing the income tax proposal.

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What they’re saying

“Washington voters have made their position crystal clear: they've rejected a state income tax 10 separate times over the decades, standing firmly against this unconstitutional overreach that violates our state's long-standing tradition of no personal income tax. Yet the Democrat-controlled legislature continues to ignore the will of the people, pushing forward proposals that would drive businesses away, burden families, and undermine our economic freedom. This tax will hurt Clark County businesses and our overall quality of life.”

— Leslie Lewallen, Director, Clark County Chapter of Future 42 (Clark County Today)

The takeaway

The proposed state income tax in Washington faces strong opposition from small businesses in Clark County, who argue it could harm their operations, drive companies out of the state, and undermine economic growth and innovation. The businesses are urging state lawmakers to reject the tax proposal and instead focus on policies that support small businesses and entrepreneurs.