From business balance sheets to household budgets: The Washington Roundtable is out with its second installment on Washington’s affordability crisis. The report, “Prices We Pay: The Cost of Doing Business in Washington,” outlines seven cost pressures that are squeezing Washington’s businesses, forcing difficult tradeoffs and contributing to higher prices for essential goods and services.
Key findings: The report draws on six small business case studies, each based on five to 10 years of financial record, from a restaurant and winery to child care center and hardware store.
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Cascading labor costs add about 43% on top of already high base wages, including unemployment insurance, workers’ compensation, paid family and medical leave, and payroll taxes.
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Washington’s inflation outpaces the nation, and tariffs are compounding the pressure. For the 12 months ending in June 2026, the Seattle area posted a headline inflation rate of 4.5%, a full point above the 3.5% national rate.
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Businesses face hidden costs, including licensing, building permits and construction, and regulatory compliance.
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The state’s tax competitiveness ranking has fallen from 33rd to 45th in six years. Significant shifts in the tax code over the past 10 years increase unpredictability and make long-term planning hard.
“My message to policymakers is this: if your affordability agenda includes raising business taxes, it runs a real risk of making things more expensive, not less, for businesses and families,” said Rachel Smith, Washington Roundtable president.
Read the press release and the full report.
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Association of Washington Business
- September 09, 2026
- (360) 943-1600
