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flag Washington state enacts new taxes and unemployment benefits for striking workers to address a $16 billion budget gap.

flag New year’s Day in Washington state brings a package of new laws and taxes aimed at addressing a $16 billion budget shortfall. flag A controversial measure grants striking workers up to six weeks of unemployment benefits, delayed by two to three weeks and repayable if strikes are legally barred, set to expire in 2035. flag To raise revenue, a 0.5% business surcharge on firms with over $250 million in income takes effect, expiring in 2029, while the advanced computing surcharge on large tech firms jumps from 1.22% to 7.5%, with an annual cap of $75 million, expected to generate $394 million. flag Other changes include repealing tax breaks on precious metals and energy assistance credits, raising vehicle-related taxes—including a 0.2% sales tax hike, an 8% luxury vehicle tax, higher weight fees, and a temporary rental car tax increase to 11.9% in 2026. flag These measures are projected to generate hundreds of millions in new revenue over the coming years.

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