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Home / Washington Business - Spring 2003 / Business Taxes and the Bottom Line |
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Business Taxes and the Bottom Line |
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Written On: Spring 2003 |
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"Nothing in life is certain except death and taxes.”
Benjamin Franklin’s quote may be true in life, however, for Washington state job providers, the quote “Let’s make sure
we don’t tax the job provider in the private sector to death,” may be more appropriate.
Throughout this issue of Washington Business Magazine, the subject of taxes is covered from various angles.
For example, while working on the Everett and Snohomish County profile, business leaders responding to our queries often referenced taxes as a main reason for stifled growth. “Taxing us to death” was how one job provider replied when asked about the business climate in the Snohomish region.
Often forgotten as a tax, but having a profound impact on an employer’s ability to retain and hire new workers, is the minimum wage issue. In this issue’s “Insider’s Perspective,” AWB’s Grant Nelson describes the minimum wage thoroughly and illustrates current legislative activities from the business community.
The concept of fairness and consistency is a common gripe amongst employers, especially when relating to the state’s municipal tax system. Longtime AWB Board members Paul Shinoda and Wes Uhlman visited Olympia to testify on legislation that would allow for a more fair and uniform tax structure. In “Municipal Tax Fairness—Is it in Our Future?” the ongoing challenges employers have had to deal with are brought to light.
For readers interested in learning about both sides of the Machinery and Equipment Sales & Use Tax Exemption (M&E), this issue features an insightful point/counterpoint. Rep. Jack Cairnes (R-Kent) and Rep. Jim McIntire (D-Seattle) provide two very informative articles on the issue and represent their respective sides quite well.
When talking about taxes, it is also important to talk about the state budget. Employers across the state have viewed Gov. Gary Locke’s “Priorities of Government (POG)” approach as a breath of fresh air. By focusing on “priorities” rather than “wants,” lawmakers will be able to address the state’s budget shortfall in a more “fiscally responsible” way. One of the POG’s architects, Peter Hutchinson, was interviewed by Washington Business Magazine’s Dick Davis, and shared his unique perspectives in “The Story Behind POG.”
However, there is some good news to report. Thanks to AWB and our efforts around competitiveness, Washington lawmakers approved bills allowing a use tax exemption for manufacturing machinery, equipment repairs and parts. Also approved by lawmakers is municipal tax fairness, which eliminates the double taxation by some cities in our state. Both were initiatives pushed by Gov. Locke.
Finally, business tax resources on the web are the focus for this issue’s “Business Links.” Like it or not, every business must still pay its share of taxes. However, there are many websites that make researching and managing taxes just a little easier, and these helpful tools are provided in this article.
Despite the fact that Washington residents pay more in taxes than they do for food, clothing and transportation combined (according to a Washington Policy Center report last year), job providers still comprise a majority of the state’s tax base. “The Tax Issue” of Washington Business Magazine aims to shed some light on this topic before more employers are taxed out of business.
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