Another study finds not having an income tax is good for a state's business climate
The Small Business and Entrepreneurship Council is out with its annual business tax climate report. (Press release here and pretty cool interactive map here.) According to SBEC, Washington has the 5th best business tax system. SBEC constructs its index using 18 measures: The 18 measures are: 1) state’s top personal income tax rate, 2) state’s top […]
April 19 , 2012 - Richard S. Davis
The inequality debate and its progenitors
The New York Times runs an extended profile piece on Emmanuel Saez and Thomas Piketty, the two economists whose work underpins much of the current political assault on “inequality.” Last week, I posted here on the overhyped discussion, including links to recent research indicating that the Piketty-Saez analysis is fundamentally flawed. Simply: they ignore a lot of relevant things. In […]
April 18 , 2012 - Richard S. Davis
New Pew Center on the States report evaluates evaluations of tax incentives
In my column today, I comment on a recent report by the Pew Center on the States. The study, Evidence Matters, examines how states evaluate tax incentives. From the column: Pew identifies Washington as one of 13 states “leading the way” in the systematic evaluation of tax incentives. Washington’s review process does a good job […]
April 12 , 2012 - Richard S. Davis
Time to shed some light on the overhyped income inequality debate
It’s spring and soon the fair weather protesters will take to the warming streets to denounce income inequality once again. The chants of the 99 percent, however, should fade in the face on an increasing body of economic research that reveals the hollowness of their fundamental premise. The rich have not gotten richer at the […]
April 11 , 2012 - Richard S. Davis
Lawmakers leave Olympia with balanced budget and structural reforms
Although it took a few hours of a second special session (consider it stoppage time), the state legislature adjourned this morning with a balanced budget and some important structural reforms. Rachel La Corte has a good, brief report for AP on the session’s final hours and accomplishments. Here’s the governor’s statement. Acknowledging the difficult challenge […]
April 10 , 2012 - Richard S. Davis
Why pension reform matters
Kriss’s post below neatly lays out the argument for reforming the state pension system, one of the remaining issues under discussion in the 11th hour discussions in Olympia today. The Research Council has paid close attention to pension issues over the years, for example in the 2011 policy brief, Reforming Public Pensions. The Seattle Times today […]
April 09 , 2012 - Richard S. Davis
Continuing to compete for aerospace work
In today’s Everett Herald, Troy McClelland and Richard Cooper present a strong case for continued work on our state’s competitiveness. McClelland is president of Economic Alliance Snohomish County and Cooper, CEO of The Everett Clinic, serves as the Alliance’s board chair. They point out that, while it’s great for our economy that Boeing decided to build […]
April 06 , 2012 - Richard S. Davis
Risk of economic slowdown reinforces need for a sustainable state budget
The Wall Street Journal headline sounds the alarm: Job Growth Loses Steam The government’s main snapshot of the labor market showed employers added 120,000 jobs in March, half the upwardly revised number of the month before. That snapped a three-month streak of 200,000-plus jobs growth, the economy’s best showing since 2006. There were bright spots: […]
April 06 , 2012 - Richard S. Davis
House passes another budget, reform prospects still in doubt
No one need worry about whiplash incurred by following the slow budget lobs across the rotunda. The House passed another budget proposal yesterday. Olympian reporter Brad Shannon calls it a fresh sign of life. The plan’s fate in the Senate, which is missing Republican Leader Mike Hewitt due to health issues, remains unclear. Lt. Gov. […]
April 04 , 2012 - Richard S. Davis
Budget debates won't end when the gavel falls on the special session
In my column this morning, I suggest that the state’s ongoing budget shortfalls provide the proper lens through which we should view the coming election. The polar positions have been clearly defined. Reformers are calling for fundamental policy changes: conforming public employee pensions to fiscal reality and private sector norms, streamlining state operations, ending unfunded […]