B & O tax
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's Business and Occupation (B&O) tax stands out as one of the few gross receipts taxes (GRTs) still around in America. Last week the Tax Foundation wrote critically of GRTs, noting that
Though gross receipts taxes are business taxes and as such are sometimes viewed as progressive, in reality, they have potential to be more regressive than sales taxes as they pyramid and are passed on to consumers.