Opinion: State policies matter for taxpayers and the business climate

Washington job growth is weaker than expected while Idaho and Montana rank among the nation's least regulated states. — Washington job growth is weaker than expected while Idaho and Montana rank among the nation’s least regulated states.

🎧 Fiscal Policy Gaps: WA vs. Idaho, Montana & Wyoming

Jason Mercier offers proof yet again that good fiscal policies matter and that some of the states in our region are acting in the taxpayers’ best interest

Jason Mercier
Mountain States Policy Center

I start each workday by reviewing the latest economic and government reports for Idaho, Montana, Washington, and Wyoming. It doesn’t take long to see a trend. Those states that prioritize fiscal discipline and a low regulatory and tax burden are doing well. The opposite is true if a state fails to keep its fiscal and regulatory house in order.

Jason Mercier

Consider just a few of the recent economic updates for our region.

In Idaho, Governor Little highlighted the Gem State hitting its revenue targets by saying: “Idaho’s strong revenues are a testament to our growing economy, and in Idaho the government lives within the means of the taxpayers. We made responsible decisions to rein in spending, protect our balanced budget, and keep Idaho on strong financial footing. At the same time, we are continuing to invest in the priorities that secure Idaho’s long-term success — strong schools, reliable infrastructure, water projects, and public safety. Fiscal discipline and strategic investments are how Idaho will continue leading the nation in good government and a high quality of life.”

Lori Wolff, Governor Little’s Budget Director, told me about this news: “April’s revenue report is positive news for Idaho and reflects continued strong economic activity and growth across the state. Idaho will end the year with a balanced budget, and we will continue to make strategic budget decisions that balance investments for continued economic growth and tax relief for Idaho families.”

Along with this news, Governor Little also highlighted Idaho having one of the lowest tax burdens in the country: “Idahoans work hard for their money, and they deserve to keep more of it. Ranking among the lowest in the nation for tax burden doesn’t happen by accident – it is the result of disciplined budgeting, responsible policies, and an unrelenting focus on the taxpayer. We will continue to deliver tax relief while investing in the priorities that keep Idaho strong.”

In Montana, Governor Gianforte noted that the Treasure State received a Top 10 ranking in the 2025 Financial State of the States report produced by Truth in Accounting (Idaho and Wyoming were also in the Top 10).

Gianforte said: “Since taking office, we’ve gotten our fiscal house in order and created an environment that encourages investment, innovation, and opportunity. Through our responsible budgeting and fiscally conservative policies, we’ve been able to pay off the state debt, save for a rainy day, and return money back to the hardworking Montanans who earn it.”

The Governor’s press release further noted: “In addition to historic tax cuts and making Montana debt-free, the governor and legislature have invested to stabilize the budget and mitigate against shortfalls through the Budget Stabilization Fund. Thanks to strong investments, Montana’s rainy day fund has strengthened from 4.5 percent of expenditures in 2023 to 16 percent in this biennium.”

The news coming out of Washington state, however, couldn’t be any different.

Consider this finding from the Evergreen State’s Economic and Revenue Update for May: “Washington job growth has been weaker than expected and revisions have lowered the level of employment.”

Employers are also sounding the alarm about the crushing tax and regulatory burden being imposed by Washington lawmakers.

A new study by the Association of Washington Business found: “Washington has one of the most expansive and complex regulatory environments in the country — and that burden is affecting jobs, business growth and investment decisions . . . Half of Washington’s regulatory requirements qualify as duplicative or redundant, and by a broader measure, up to 70% can be classified as administrative ‘red tape’ . . . At the same time, multiple Mountain West states—including Idaho, Montana, and Wyoming—rank among the least regulated in the nation, offering regulatory environments that are markedly less burdensome.”

And of course, there were these comments from Washington’s former two-term Democratic Governor Chris Gregoire, who warned that the state was acting anti-business and greatly overspending: “I left office with a budget of 33 billion, and the budget today is 80 billion. I think that’s a little bit too much of a growth. And yet, how we find ourselves at the end of every legislative session now is in the hole and projected to be in the hole. I would suggest to you we don’t really have an income problem. We have a spending problem, and we’re answering it by stacking one more tax, one more rule, one more regulation. And the one thing that the business community doesn’t need is that lack of predictability.”

The contrast between these states on their current economic outlook couldn’t be any greater. Proof yet again that good fiscal policies matter and that some of the states in our region are acting in the taxpayers’ best interest.

Jason Mercier is vice president and director of research of Mountain States Policy Center, an independent research organization based in Idaho, Montana, Eastern Washington and Wyoming. Online at mountainstatespolicy.org.

Jason Mercier offers proof yet again that good fiscal policies matter and that some of the states in our region are acting in the taxpayers’ best interest

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