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 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 […]
March 21 , 2012 - Richard S. Davis
Taxes in play for 2012 campaigns and 2013 legislative session
In my column this morning, I briefly review some of the trial balloons floated this session by advocates of higher taxes. In addition, I cite three recent studies examining our state’s business tax burden. We’ve written about the business tax research here previously. The three studies are the Tax Foundation’s Location Matters report, TF’s best […]
March 07 , 2012 - Richard S. Davis
Budget negotiations must include Senate Rs, centrists
That’s the thrust of my column this morning. While Democrats may want to ignore the Friday vote, the bipartisan coalition that passed the Senate budget must be included in the final resolution. For those of us for whom sustainability is a top priority, the Senate budget sets the state on the right path. …Reconciling the […]
March 06 , 2012 - Richard S. Davis
Billions of dollars in new taxes if preferences are repealed
HB 2762, the subject of an earlier blog post today, would repeal tax preferences worth $3.7 billion in the current biennium. Small businesses, farms, corporations, nonprofits, churches, transit agencies, cities and counties … too many groups to list here .. would all face tax increases. For some, the increases are fivefold. See this 8-page list for scheduled repeal […]
March 06 , 2012 - Richard S. Davis
Bill to repeal tax preferences threatens jobs and investment
In the closing days of the legislative session, a HB 2762, a bill “to periodically expire all nonconstitutionally required tax preferences that are not already subject to expiration” may be getting new life. It passed out of House Ways and Means Committee March 3, on a party-line vote. What “to periodically expire” means is that on […]
March 01 , 2012 - Richard S. Davis
New report by Tax Foundation: WA taxes are a mixed bag for business
Businesses differ in their response to state tax policy. Mature firms may face different tax challenges than do start-ups. Manufacturers, retailers, and R&D firms also have varying concerns when it comes to the way state taxes affect them. A new study by the Tax Foundation offers new guidance to business owners and policymakers who want […]
February 09 , 2012 - Richard S. Davis
Why it's a mistake to increase capital gains taxes
In an earlier column, I pointed out that several problems with proposals to tax capital gains in our state. With key legislators, including the Senate Ways and Means chair, still promoting the idea, I wanted to call attention to a recent blog post from the American Enterprise Institute. Some very effective debunking of prevalent myths. […]
February 09 , 2012 - Richard S. Davis
Cities continue to block B&O tax simplification backed by business, governor
For years, business groups have sought a way to simplify the state’s myriad municipal business and occupation tax regimens. AWB president Don Brunell devoted his column this week to the issue, indicating support for Gov. Gregoire’s tax simplification proposal. B&O taxes are assessed on a business’ gross income, regardless of profit. The state imposes a […]
February 03 , 2012 - Emily Makings
New Brief: Nation's Seventh-Best Business Climate?
Last week, the Tax Foundation released its annual ranking of state business tax climates. Washington–largely thanks to our lack of an income tax–ranks seventh in the nation. In a policy brief, we discuss the ranking and what it means for Washington. This brief builds on a post from Dick last week.