Washington lawmakers want a new tax on hospital executives—because they never met a tax they didn’t like
Meanwhile, billionaires like Jeff Bezos are fleeing the state to avoid Washington’s tax insanity.
Washington Democrats are once again trying to tax their way out of their own policy failures, this time by targeting hospital executives with a new "excess compensation tax" on nonprofit hospitals.
House Bill 1560, sponsored by Rep. Emily Alvarado (D-Seattle), would impose a tax on the five highest-paid employees at nonprofit hospitals—money that lawmakers claim will be used to “expand healthcare access.”
This tax does nothing to lower healthcare costs, improve hospital services, or attract top medical professionals. Instead, it further punishes businesses for operating in Washington—just as we’ve seen with high-profile exits like Jeff Bezos moving to Florida to escape Washington’s tax burden.
If HB 1560 passes, expect:
Higher healthcare costs as hospitals pass the tax onto patients.
Fewer qualified executives and top medical professionals in Washington.
More businesses and high earners fleeing the state to avoid yet another tax.
This isn’t about fairness—it’s about expanding government control over the private sector.
The false promise of HB 1560
Supporters of the bill claim that hospital CEOs and top executives are overpaid and that taxing them will help fund healthcare for low-income Washingtonians.
But here’s the reality:
Hospitals will pass this cost onto patients. Just like every other tax increase, businesses don’t absorb costs—they pass them along.
Washington will lose top talent. High-performing executives and medical professionals will leave the state or refuse to work here.
This tax sets a dangerous precedent. Once the state starts taxing “excess compensation,” who’s next? Tech executives? Small business owners?
Meanwhile, actual billionaires like Jeff Bezos are fleeing Washington to escape high taxes—while middle-class Washingtonians are left footing the bill.
Washington is driving businesses and talent out of the state
Washington’s hostile business climate is already pushing companies, executives, and job creators to other states.
Bezos left Washington and saved $1 billion in taxes by moving to Florida. (MyNorthwest)
Other high earners are following, taking jobs and investments with them.
Small businesses are struggling under the weight of high taxes and regulations.
Instead of making Washington a place where businesses want to grow, lawmakers are making it less competitive, less attractive, and more hostile to success.
Who benefits from this bill?
Politicians looking for easy talking points—it’s easier to blame "greedy executives" than to fix the healthcare system.
Big government bureaucrats—more tax revenue means more money for wasteful government programs.
Other states—which will gladly welcome the top talent and businesses fleeing Washington.
Who doesn’t benefit?
Patients, who will see higher costs.
Hospitals, which will have fewer resources to hire the best talent.
Workers, who will face declining healthcare quality as hospitals struggle to recruit and retain leadership.
This bill isn’t about helping Washingtonians—it’s about punishing success.
What’s next?
If HB 1560 passes, expect:
Higher healthcare prices as hospitals adjust for new taxes.
More top medical professionals and executives leaving Washington.
Another step toward a statewide income tax on all workers.
The state doesn’t have a revenue problem—it has a spending problem.
Instead of making Washington a business-friendly state where people want to live and work, lawmakers are doubling down on high taxes, overregulation, and anti-growth policies.