The letter urges lawmakers to reject the income tax in order to avoid negative impacts on Washington’s economy
Ken Vance, editor
Clark County Today
On Monday (March 9), 30-plus local businesses in Clark County sent a joint letter to the Washington State Legislature expressing their concerns regarding the proposed state income tax, Senate Bill 6346. The letter urges lawmakers to reject the income tax in order to avoid negative impacts on Washington’s economy.
“This tax risks driving businesses out of Washington to more competitive states, exacerbating talent shortages and stagnating growth in our region. Instead of supporting entrepreneurship, SB 6346 could stifle innovation and deter new ventures, ultimately harming the workers and families we employ,’’ read a portion of the letter shared with Clark County Today Monday. “We urge you to oppose this bill and prioritize policies that bolster small businesses and entrepreneurs.”
Project 42 — named because Washington is the 42nd state in the union — and its partners are hoping to shed light on a number of issues to the “persuadable middle,” voters who want more information before picking a side. The organization began work last summer around the state and the Clark County chapter held a grand opening in December.
“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,’’ said Leslie Lewallen, director of the Clark County Chapter of Future 42. “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.”
Here is the content of Project 42 Clark County Monday letter to the legislature:
March 9, 2026
To the Honorable Members of the Washington State Legislature,
We write to you today as a group of small business owners in Clark County who are dedicated to fostering economic growth and supporting our local communities through job creation and innovation. As you consider the bill to create a state income tax/SB 6346, we felt it was important that we communicate our deep concerns regarding the proposed income tax. While presented as a “millionaires’ tax, this measure would disproportionately harm small businesses, S-corps, and LLCs. It also threatens the vitality of Washington’s economy.
For many small business owners, income from operations passes directly through to our personal tax returns. This means SB 6346 would effectively impose a steep new tax on business earnings, even when those funds are reinvested in growth, equipment, or employee wages rather than taken as personal profit. In Clark County, where industries like manufacturing, retail, and services rely on slim margins, this additional 9.9% burden—among the highest tax rates in the nation—could force us to cut jobs, reduce hours, or delay expansions. S-corps and LLCs, which represent over 85% of small businesses in our state, would be hit hardest, as the $1 million threshold fails to account for the realities of business cash flow and reinvestment needs.
This tax risks driving businesses out of Washington to more competitive states, exacerbating talent shortages and stagnating growth in our region. Instead of supporting entrepreneurship, SB 6346 could stifle innovation and deter new ventures, ultimately harming the workers and families we employ. We urge you to oppose this bill and prioritize policies that bolster small businesses and entrepreneurs.
Thank you for considering our perspective. We appreciate your service to our community.
Sincerely,
Adams Street Bar and Grill Affinity Homes LLC
Al and Ernie’s Battle Ground Farmer’s Market
Battle Ground Hospitality Collective
Broughton Bishop
Camas Cellars
Cruise the Couve
Cydat Industries LLC
Dick Hannah Dealership
Doriot Construction
Galeotti’s Wine Cellar
Glen Kincaid Construction Inc
Global Security and Communication
Gleek LLC
Gunderson Associated Tire Centers, Inc. / Les Schwab
Lacamas Financial Group
Maddox Industrial Transformer
Northwest Precision Tool
Opsahl Dawson
Prairie View Station
Stewart Plumbing
Tapani Inc
The Schlotfeldt Law Firm, PLLC
Thompson Metal Fab
Total Insurance by George
Trapdoor Brewing
Tukes Taphouse
Uptown Pub
Vancouver Granite Works
Vesta Hospitality LLC
Washougal Pub
Williams and Sons Jewelry
Wolf Industries
Also read:
- VIDEO: Rejected – WA SOS will not process referendum to repeal income tax law
State officials stopped Let’s Go Washington’s referendum to overturn the new tax, citing constitutional limits. Legal and political battles, including a Supreme Court challenge, are expected next. - Southwest Washington lawmakers to hold a series of town hall meetings throughout the 17th Legislative District
Sen. Paul Harris, Rep. Kevin Waters, and Rep. David Stuebe will answer questions and discuss the state’s expanded operating budget and newly passed income tax at five April town halls. - Project 42: It is an income tax, not a millionaire’s tax
Project 42 co-founder Dann Mead Smith urged Clark County residents to organize against the new income tax law, emphasizing it can be expanded to reach more than just millionaires. - VIDEO: WA income tax signed into law with legal challenge right behind
A 9.9% income tax affecting high earners in Washington faces swift legal opposition and a proposed citizen initiative seeking repeal. - Income tax signed in Washington with a legal challenge close behind
A new law will tax households earning over $1 million, with funds aimed at expanding credits for lower-income residents. Lawsuits and challenges are already underway.
