Washington mulls payroll tax on big firms to plug Medicaid funding gap
Washington lawmakers are weighing a payroll tax on large employers to offset up to $51 billion in federal Medicaid funding losses over the next decade. The bill targets companies with more than $5 million in gross receipts and workers earning over $125,000, aiming to raise over $5 billion per biennium. Seattle would be exempt due to its own tax, and a public hearing is set in Olympia. Opponents warn it could drive business and jobs out of state, while Microsoft has opposed the idea. If approved, the tax would start July 1.