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Home / Washington Business - November/December 2003 / AWB Survey: Taxes, Fees and Shaky Economy Troubling to State Employers |
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AWB Survey: Taxes, Fees and Shaky Economy Troubling to State Employers |
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Written On: November/December 2003 |
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Written By: By Scott Carlson |
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Moore Information sent online surveys to 2,017 members, and according to the 236 responses, the cost of doing business in Washington is still the straw that’s breaking the camel’s back.
“The climate of business in Washington may depend on who you ask,” said AWB President Don Brunell. “Fiscal year 2003 was most likely a great year for those who are adding job positions within their companies and expanding their customer base. And for the employers who cut positions, it may seem like the ground is shaking beneath them.
Moore Information accepted input from AWB members from Aug. 25 to Sept. 5.
A memo regarding the survey from Moore Information to AWB was broken down as follows:
Issues Overview
The mood of AWB members is widely pessimistic, with more than two-thirds of members saying things in Washington are off on the “wrong track” – their sentiment closely reflects that of the public at large, according to other recent statewide survey data.
More than half (53 percent) of members report that business conditions in Washington state have “worsened” over the last year, while 35 percent say the business climate reflects the status quo, and just 12 percent are of the opinion that the business climate has improved.
AWB members expressed a variety of concerns when asked to name the most important issue facing their business today. Economic uncertainty/business conditions is the leading top-of-mind issue today (16 percent), followed by the tax burden (11 percent), government regulations (11 percent), and health insurance costs/availability (11 percent).
When given a list of 14 business issues and asked to rank them in order of importance to their business, AWB members assign the highest ratings to “taxes and fees” (70 percent), and “health care” (64 percent). The least important issues as ranked by AWB members included the “workforce training” (18 percent), “minimum wage” (17 percent) and “tourism” (8 percent).
Employment Base
Looking at business growth, 44 percent of businesses report they have added positions in the last year. However, most of those businesses (70 percent) added fewer than 10 positions.
Nearly half of businesses with 100 or more employees (48 percent) plan to add positions in the next year. But, among smaller firms, only 34 percent plan to add positions in the next year. Of those firms planning to add positions, most (79 percent) expect they will add fewer than 10 positions.
At the same time, four-in-ten AWB members (41 percent) have cut positions within the last year, and of those firms, most (74 percent) cut fewer than 10 positions. Still, more than half of those cuts (57 percent) were permanent.
For most members (69 percent), there are no plans to cut any positions in the next year. Of those planning to cut positions, most plan on cutting fewer than 10.
Stimulating the Economy
When it comes to factors which may play a role in boosting Washington’s economy, the plurality of members anticipate that “streamlining regulations” will be most important (47 percent), followed by tax incentives (36 percent).
“AWB and its members will help cement the shaky ground of economic uncertainty during the 2004 Legislative Session by passing legislation that keeps Washington competitive and creates a business-friendly atmosphere,” Brunell said.
For more information on the survey, contact Don Brunell at (360) 943-1600 or DonB@awb.org.
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