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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 […]

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. […]

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 […]

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.

Machinery & Equipment Exemption Key to Keeping Jobs, Investments in Washington

Manufacturing continues to be a strength of Washington’s economy. We have published a Policy Brief on the machinery and equipment exemption, which contributes to that strength by encouraging the capital investments that anchor manufacturing here.

Tax Foundation: WA has nation's 7th best business tax climate. There's more.

The Tax Foundation, a respected national tax policy research group, released its annual report ranking the business tax climate in the 50 states. As it has in the past, the group gives Washington generally high marks. This year, the state comes in No. 7, up one from last year’s 8th place ranking.   Here’s the […]

Proposed capital gains tax would add volatility to state tax structure

State Rep. Laurie Jinkins, D-Tacoma, has proposed a new, 5 percent capital gains tax. Introduced as HB 2563, the measure has picked up 26 Democratic sponsors and will doubtless generate a bit of buzz. At least the think tank that germinated the idea is pleased. Here’s what the Washington State Budget and Policy Center has […]

A longer-term look at state budget gaps

Sunday the Seattle Times editorial board released a series of reforms necessary to guide the state back to a sustainable budget. It’s a smart list, including a number of ideas that we have written about in the Thrive Washington series and in various WRC policy briefs. As important, the editorial examines the growing gap between […]

Perspective on changes in state revenue collections

In my column this morning, I discuss how and why state revenues have fallen as a share of the economy. State revenues have fallen as a share of the economy. But it’s mostly because taxpayers rejected the higher burdens. Please go to the column for context. And, yes, revenues have even fallen since 1995 on […]

State revenues recovering slowly – still below peak

After yesterday’s forecast, we received some questions about how state revenues have performed historically. Kriss put together a graph showing Near General Fund State (NGFS) collections, including the forecast through 2013. These projections show tax receipts not climbing back to 2008 levels until the end of the biennium. This chart, tracking NGFS spending since 2000, […]