GOP leaders warn income tax and budget proposal will worsen affordability, risk business flight

Republican leaders in Olympia used a Friday morning media availability to renew opposition to a proposed income tax and to criticize the operating budgets passed by the majority, saying the measures will harm affordability and imperil the state's fiscal outlook.

Senator Braun said the budget "spends roughly $5,000,000,000 more than revenues" and relies on one-time funding and optimistic assumptions about agency underspending. "This budget does nothing to address the spending issue," he said, adding it leaves Washington at risk of "anywhere from 8 to $10,000,000,000 short in the next biennium." He also said the Democratic majority has resisted placing a constitutional barrier on future income-tax expansion and warned that a high threshold this year is likely to be lowered in later sessions.

April Connors, the House floor leader, said House Republicans offered roughly 19–20 amendments to the operating budget meant to improve affordability, including property-tax relief measures. Connors said the House and Senate budgets "rely on an unconstitutional income tax" and predicted legal challenges if the measures pass. "We're expecting probably court challenges on both of those," she said.

Senator Chris Gildan, who spoke on budget projections, accused the senate budget of sweeping capital funds and counting on agency underspending and other optimistic assumptions. "I don't think you should budget based off of hope," he said, and warned the plan assumes unrealistically low future spending growth.

On business impacts, leaders argued the income tax and related changes are already prompting planning by small and mid-sized firms. "I guarantee you, because I'm talking to them, they're already making plans to either move from the state or reduce operations," Braun said. Connors and Gildan also cited polling and anecdotal reports they said indicate business owners are considering relocation, which they said would reduce jobs and local tax bases in affected communities.

The leaders said they plan to raise the budget and tax concerns when they meet with the governor and urged him to press for tax reductions. Braun said Republicans would offer help to revive certain stalled measures only if the governor chooses to push them in the final days.

The leaders declined to claim universal agreement across the Legislature and pointed to internal and procedural constraints: they said minority members have limited input in the closed-door conference committee process that finalizes budgets.

What happens next: The Republican leaders said they will continue outreach to members across the aisle and to the governor, and signaled possible court challenges if an income tax passes. The media availability did not announce any policy actions or formal motions by the Republican caucuses.