Pederson then quotes a report that ranks Washington 42 out of 50
Mark Harmsworth
Washington Policy Center
Senator Jamie Pedersen (D) recently sent out an email claiming that Washington State was one of the best places to do business in the United States. Unfortunately for Senator Pedersen, the press release completely neglected to mention the data that the claim was based on was not on business friendliness, but based on “the right to organize and collectively bargain”, which is already state law and nothing to do with actual business or economic activity.
Worse still, the CNBC report quoted by Senator Pedersen, ranks Washington 42 out of 50 for business friendliness. Not exactly top 10 despite the Senators’ claims.
Business friendliness is not based on how much the government can extract taxes from its residents and business. Business friendliness is based on low taxes and minimal business regulations which result in business growth and job creation.
Another anti-business example, mentioned in the email, highlights the legislative vote for Senate Bill 5041, hurting business by forcing employers and taxpayers to pay for employees on voluntary strike to be compensated while on the strike line.
Hardly business friendly.
The data quoted in Senator Pedersen’s press release is supplied by the organization Oxfam. Oxfam is a global socialist organization who supports policies such as a minimum global tax of 25%, nationalized public transportation, global minimal wealth tax and a 60% tax on investments. Everything Oxfam stands for has absolutely nothing to do with economic development and everything to do with extracting more taxes from the real job creators in Washington.
Oxfam’s goals are not aligned with the average Washington worker or business owner and should not be considered the source for good policy ideas.
In what seems like a dystopian world, policymakers in Olympia think that small business owners personally make millions of dollars per year and will absorb unlimited tax increases without complaint. The reality is completely the opposite. Business owners often take a reduced or negligible salary to ensure the success of their business. Owners are more than happy (unless the government is wasting money) to pay fair and reasonable taxes to cover the cost of operating a business in Washington. When state legislators, who have little or no business experience, start ballooning Business and Occupation (B&O) taxes, sales taxes, license fees, property taxes, fuel taxes, vehicle taxes/fees, excise taxes, RTA taxes, recording fees and estate taxes to name just a few, businesses understandably fail or leave the state to avoid the inevitable, further reduction in business income.
Olympia lawmakers demand for taxes has almost doubled in the last 8 years.
The Washington Policy Center report card, pulling from reputable, non-partisan sources, shows that Washington is not one of the best places to do business. When this conclusion is based on the government’s own data, it’s difficult to argue.
The data doesn’t lie, despite what Oxfam and Senator Pedersen claim.
The anti-business policies of the current Washington legislature are destroying Washington businesses but there is hope if leaders in Olympia reverse course and make some simple changes.
Rather than cherry picking data to defend poor policy choices, Washington legislators should focus on helping Washington business by making Washington a more attractive place to live and do business by having a competitive business climate with lower taxes and less unnecessary regulations.
Now is the time to act, cut state spending and pass legislation that will reduce the taxes on business and get Washington back from 5th worst state to do business, to the 6th best.
Mark Harmsworth is the director of the Small Business Center at the Washington Policy Center.
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