Microsoft pledges $1M to new PAC in latest push against proposed taxes in Washington state

Microsoft is intensifying its opposition to proposed taxes in Washington state with additional funding. The Redmond, Wash.-based tech giant has pledged $1 million to a new PAC called Washington Coalition for Responsible Taxes and Spending. The Seattle Times first reported on the PAC. Microsoft has been vocal about its concerns with the state’s budget plans, which include a proposed 5% payroll tax on large employers. The company also contributed more than $300,000 to another PAC, People for an Affordable Washington, that includes other large employers such as Alaska Airlines, Costco, Nordstrom, and T-Mobile. Seattle-based venture capital firm Madrona contributed $200,000… Read More

Apr 15, 2025 - 23:38

Microsoft pledges $1M to new PAC in latest push against proposed taxes in Washington state

The Microsoft campus in Redmond, Wash. (GeekWire File Photo / Todd Bishop)

Microsoft is intensifying its opposition to proposed taxes in Washington state with additional funding.

The Redmond, Wash.-based tech giant has pledged $1 million to a new PAC called Washington Coalition for Responsible Taxes and Spending. The Seattle Times first reported on the PAC.

Microsoft has been vocal about its concerns with the state’s budget plans, which include a proposed 5% payroll tax on large employers.

The company also contributed more than $300,000 to another PAC, People for an Affordable Washington, that includes other large employers such as Alaska Airlines, Costco, Nordstrom, and T-Mobile. Seattle-based venture capital firm Madrona contributed $200,000 to that PAC, which has spent more than $1.7 million.

We reached out to Microsoft for comment.

Microsoft President Brad Smith told GeekWire last month that the business community is “remarkably united” on urging lawmakers to abandon their tax proposals.

Democrats in Olympia rolled out the latest version of tax increase proposals, The Washington State Standard reported.

The new plan removes a proposed payroll tax that would have impacted companies such as Microsoft. But it also adds an increase in surcharge on tech companies and other taxes on large businesses.

The proposals are meant to address a projected $16 billion budget shortfall.

The proposed payroll tax would have impacted companies with annual payrolls exceeding $7 million. They would pay a 5% tax on employee wages above the Social Security wage limit — set at $176,100 in 2025.

Critics said the payroll tax would force tech companies and startups to reconsider their presence in the state.

Other tax proposals have included the B&O tax and lifting restrictions on property tax increases.

The proposals, if approved, “would result in the largest tax increases in state history, perpetuating a dangerous trend of unsustainable spending growth,” reads an April 2 letter to state House and Senate leaders, signed by the executives of four major business organizations and 65 other business leaders from across the state, including Smith.

Treasure Mackley, executive director of Invest in WA Now, wrote in an opinion column last week urging state lawmakers to pass the new taxes to avoid cuts. “How will you make sure that the wealthiest people and corporations pay what they truly owe in taxes in order to avoid deep cuts and keep state programs funded?” Mackley wrote.

Washington is one of a few states without a personal or corporate income tax. Most state revenue comes from sales, property, and B&O taxes — a system critics say disproportionately burdens lower-income residents.

At a budget press conference this month, Gov. Bob Ferguson declined to take a position on the payroll tax but voiced strong opposition to a separate wealth tax proposed in both the House and Senate budgets.

The Wall Street Journal’s editorial board wrote Sunday that Democrats in Washington state “want to compound the damage from tariffs.”

Lawmakers have until April 27 to finalize the budget and send it to the governor’s desk.

Previously: Washington’s proposed statewide payroll tax sparks backlash from tech industry and local leaders