Washington Policy Center held a forum in Vancouver on Thursday, with experts and policymakers discussing issues such as taxes, minimum wage, retail theft, and a scary future in regard to AI

Paul Valencia
Clark County Today

Is it a state income tax? Or is it a millionaire’s tax?

Depends on who you ask.

Is a higher minimum wage good for Washington or not?

Depends on who you ask.

There were plenty of questions and answers Thursday night at the Vancouver Community Library at a forum presented by the Washington Policy Center (WPC).

The theme: Is Washington state business- and worker-friendly?

The panel included State Representatives Monica Stonier (49th District, Vancouver) and April Berg (44th District, Snohomish), both Democrats. Also on the panel were Mark Harmsworth, director of the Small Business Center at the WPC, and Elizabeth New, director of the centers for Health Care and Worker Rights at the WPC.

“It’s great to have a room full of people who are interested in ways to have Washington be the best place to live and work,” New said. “We all know it’s the best place to live. We want it to be the best place to work and start businesses.”

There are certainly differing views on how to make that happen.

There were several topics, but the tax that was recently signed into law received plenty of attention.

Harmsworth and New called it an income tax, while Stonier and Berg referred to it as a millionaire’s tax.

“The problem with the income tax that I see is the rich are already paying a disproportionate share of the tax bill and they’re the ones who can leave most easily,” New said, noting that a similar tax in Massachusetts led to the exodus of billions in that state’s economy.

“I just don’t know what’s going to happen when, if, and when, or if, the millionaires leave,” New said. “That is what is not clear.”

Earlier, New made note of a survey by the Association of Washington Business that said one in four people are considering moving their business out of the state.

“Workers need businesses. They need choice. They need skills. Experience. They need increased responsibilities,” New said. “And fewer businesses mean less opportunities. So I don’t want to see them leave.”

Stonier pointed out that the tax structure, including the new tax, needs clarification.

“It would be helpful if people knew that this was an income tax on people who make over a million dollars and not just call it an income tax,” Stonier said.

Harmsworth, as business owner, said he wants to be able to trust government leaders when it comes to the tax structure. He pointed out that Governor Bob Ferguson initially said he would not sign the new tax, but then he did.

“For a small business owner, predictability and trust are important,” he said.

Berg pointed out that while there might be people who are considering leaving the state, if they go to a state with an income tax, their income would be taxed from the very first dollar. In Washington, this new tax will only start taxing people after they have earned $1 million.

The panel went on to the issue of minimum wage.

New said a high minimum wage in some cases “is causing some workers to lose hours. It’s causing layoffs.”

Stonier said workers need more money.

“From what I know from people in this community is that they know they are not making enough to make rent, to buy a home, afford child care, and, most recently, pay for their health care,” Stonier said.

Changing subjects to organized retail theft, Berg called it “silly” that the legislature vetoed $500,000 that would have gone toward tackling the issue.

Theft, she said, is “killing our small business, big businesses, with low margins.”

Harmsworth pointed out that common sense could prevail here.

“We could enforce the laws that are on the books. That would help,” he said. “Arrest these people who are … stealing from stores.”

There were also a few questions from the audience. One asked about a scary future we are staring at in regard to AI.

“AI is coming whether we like it or not,” New said. “It’s really important for employers, work training, workforce development, to get employees to use it well. There could be guardrails from the state but we can’t handcuff innovation and progress, either.”

Stonier said we need to come to consensus when it comes to what kind of human touch should be required. She wants to make sure that a professional, in say medicine, the law, or education, is taking responsibility for a document with their name on it, that it is not just an AI response.

The panelists all agreed that there are challenges with AI.

“Folks gotta eat. I’m not sure how folks are going to eat with AI,” Berg said, noting that top minds in the field have been clear that the majority of the workforce we have today will not be needed in the future.

“As policymakers, we do have a responsibility to have a hand in that future because folks gotta eat,” Berg said. “We’re seeing more businesses become creative about having AI help their workforce and not replace the workforce.”

In conclusion, is Washington business- and worker-friendly?

“If you tax a business owner more, less jobs, less money, less hours for their workers,” Harmsworth said. “That is fundamentally what happens.”

New said she would like political leaders to stop making business owners the bad guys.

“We have leaders telling employers not to let the door hit them on the way out,” New said.

Without naming names, she was likely referring to Seattle Mayor Katie Wilson, who does not seem to have a problem with big businesses leaving the state.

“Quit treating employers like people who are trying to hurt us instead of people who are offering us jobs,” New said.