Historic Tax Increase Not Sitting Well With Washington Businesses

It's no secret that businesses in Washington State, large and small, have been feeling some uncertainty with regarding to the future.  After more than 10 straight years of tax increase, the State Legislature went all in this year with the largest tax increase in state history.

The most recent survey results released by the Association of Washington Businesses (AWB) highlights that tax burden.  The AWB conducts their survey each quarter, so the most recent survey of 427 businesses was done between July 1st and August 6th.

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In their spring survey, 52% of Washington State employers cited the ever increasing tax burden as their biggest challenge.  In the latest poll that number rose to 58%.  That nearly 6 in 10 job creators expressing real concern over the tax climate that has been (and continues to be) fostered by lawmakers.

Another area that saw a big jump in concern was healthcare costs.  Half of the employers surveyed were worried about the increasing costs compared to 42% in the spring survey.  Taxes and healthcare were in the top two policy priorities for employers in the State at 69% and 36% respectively (homelessness was also a priority at 36%).

What Would Employers in Washington Like To See Change?

The employers surveyed were asked what the one thing the State could do to help their business.  The answers (in order) weren't overly surprising.

• Reduce Taxes (34%)
• Regulatory Reform (21%)
• Affordable Healthcare (19%)
• Reduce Government Spending (15%)

What About National Factors Impacting Employers?

58% of those surveyed still had concerns regarding the tariff situation, but that dropped significantly from 72% in the spring.  As far as the tariff impact itself, 51% said they have been directly affected with 85% saying that input costs have gone up and 40% experiencing supply chain disruptions.

Manufacturers in Washington State had a bleak look on the economy has a whole.  Only 12% felt the State economy was strong or very strong while 26% held that opinion of the National economy.  When asked about their biggest challenges, the responses were similar to those of businesses.

Taxes were top of the list (57%), followed by healthcare costs (52%), goverment regulations (42%), and inflation (41%).  Two-thirds said the overall tax burden was their top policy issue.  As far as helping their business, 34% said the State should reduce taxes while 19% felt reducing spending was the best way to help.  To see the full results of the employers survey click here, and for the manufacturers survey click here.