Clark County small businesses urge legislature to reject state income tax

More than 30 Clark County businesses sent a letter to state lawmakers opposing Senate Bill 6346, arguing the proposed income tax could harm small businesses and the broader economy.

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

The letter urges lawmakers to reject the income tax in order to avoid negative impacts on Washington’s economy

Also read:

share