By Rep. Peter Abbarno
October 1, 2025

Washington families, seniors and small business owners are already confronting one of the highest costs of living in America. From food to housing, transportation to childcare, everyday expenses are squeezing household budgets. Now, with sweeping tax increases slated to take effect on Oct. 1 — and others already passed earlier this year — we will face even more pressure on our household budgets.

In Washington, housing costs are significantly higher than the national average. According to RentCafe, the cost of living in this area is approximately 34% higher than the U.S. average, with housing costs being about 53% higher than the national average. We all know that housing inventory is being constrained by unnecessary overregulation, which is driving costs far higher than in other states. 

Grocery and food bills in Washington are also steeper than in many states. The state ranks about 8% above the national average for food costs. According to Washington’s cost index from Consumer Affairs, groceries are 9% above the national average. Gov. Ferguson and Democrats in the Legislature have now driven grocery costs to the 4th-highest in America. 

Washington consumers pay more at the pump: the average price per gallon of regular gas in our state is $4.55, compared to a national average of $3.15. Additionally, transportation costs (including car maintenance, insurance, etc.) are about 24% higher than the national average in Washington. These costs affect seniors attending a senior center, families commuting to work, and students traveling to school. 

Gov. Ferguson’s inaugural address became an episode of Scooby-Doo. He said, “I’m not here to defend government. I’m here to reform it. Trust me on this — I am taking that same laser focus on affordability to the Governor’s Office.” 

He didn’t.  

In the end, he was unmasked and signed the Democrats’ largest tax increase in state history. 

For many families, the cost of child care or elder care already consumes a large share of their income. Washington’s “ALICE” report (Asset Limited, Income Constrained, Employed) shows that household survival budgets in every county far exceed federal poverty thresholds. And over 14.1% of Washington consumers’ spending is devoted to “household items” (i.e., basic goods) — among the highest shares in the nation. 

Bad Olympia policies are squeezing Washington’s middle-class families. But Olympia is not finished taxing us in 2025. 

Beginning Oct. 1, services that were previously exempt will now be subject to retail sales tax. The newly taxed services include:

• Advertising services
• Live presentations
• Information technology services
• Custom website development
• Investigation, security, and armored car services
• Temporary staffing services
• Custom software and software customization

These expansions will force many service firms — including IT consultants, marketing firms, security contractors and temporary agencies — to either raise their rates for customers or absorb the increased costs. Every small business owner using these services will have to pay more, chipping away at their already thin profit margins. 

Earlier this year, the Democrat majority in Olympia already increased the gas tax by 6 cents per gallon, effective July 2025. Additionally, there is an automatic yearly gas tax increase without a vote of the people or the Legislature. That was not nominal — it adds directly to fuel costs for every driver in Washington, every time they fill up.

These tax changes don’t just affect the affluent or large corporations — they impact every one of us. Earlier this year, Gov. Ferguson and his majority increased taxes on child care facilities, health care facilities and grocery stores. The October tax increases also impact these very narrow-margined and necessary services.  

In Olympia, the instinct of the majority is to raise taxes. But with Washington already among the priciest states in the country for daily life, we must ask: when does it become too much? Seniors, small businesses and middle-income families cannot absorb unlimited tax hikes.

This year, House Republicans have introduced numerous proposals to limit property tax increases, reduce the overwhelming tax burden on working families, incentivize economic development and keep our spending in line with our revenue. You can read all these priorities at houserepublicans.wa.gov. 

Unfortunately, the majority rejected each solution to fix Washington. All Washington got was more taxes, more regulations and a government less accountable to the citizens.

Going forward, I will continue pushing for policies that reduce burdens — not pile on more. That means cutting waste, reprioritizing government spending and seeking competitive tax reforms rather than new taxes. If Washington is to remain a place where people build lives, raise families, retire in dignity and grow businesses, we must reverse this course before the damage becomes irreversible.

Rep. Peter Abbarno, R-Chehalis, represents the 20th Legislative District and is the House Republican Caucus Chair.

As printed in The Chronicle and The Reflector