We have an op-ed in today's Seattle Times on Gov. Inslee's recent veto of a reduced Business & Occupation (B&O) tax rate for manufacturing companies in Washington state. We argue that manufacturing jobs are a crucial component of providing workers with good-paying middle-class jobs, and that tax incentives will encourage companies to come here, stay here and possibly expand here:
Washington is in a 50-state competition for jobs. Tax rates are one economic factor governments can affect relatively quickly. The level of taxation is a real consideration in business decisions to locate in a state, or to move on. A lowered B&O tax rate for manufacturing would ease the burden on companies that sell out of state (which is most of them). Our manufacturers compete with firms in other states that don’t have to pay a state tax before they even turn a profit or pay their employees, as Washington companies must do with the B&O tax.
...In 2015, a surprising consensus occurred among economists brought together by the progressive-leaning Brookings Institute and the center-right American Enterprise Institute (AEI). They agreed that the creation of manufacturing jobs was key to securing a middle-class life for workers without advanced degrees, and should be among our highest priorities. Applying that idea to Washington, lowering taxes on manufacturers would pave the way for jobs that offer workers good pay and the promise of a more secure, family-wage income.
You can read the op-ed here.