PORT ORCHARD---Speaking to the Port Orchard Chamber of Commerce, Association of Washington Business President Don Brunell said the economy is the central issue of the 2008 election. Voters want to know what candidates for the Legislature and other federal and statewide offices, including governor, are going to do to provide jobs and economic opportunities for families.
“People want sustained growth. Our state’s private sector can provide the job growth and the tax revenues lawmakers need to make sure we can educate our children, provide adequate police and fire protection, and help people in need,” Brunell said. “Without a healthy stream of tax income to the state treasury, lawmakers are faced with the choice of raising taxes and fees or taking a meat ax to government programs.”
Washington is a high cost state when compared to the other 49 and foreign competitors. According to the Washington Alliance for a Competitive Economy (WashACE), a partnership between AWB, Washington Research Council, and Washington Roundtable, our state’s employers pay over half the initial state and local taxes which is five to six percentage points higher than the national average.
Some of this difference is attributed to the state’s Business and Occupation tax, which levies taxes on gross business revenue. “The chances of Washington voters approving a corporate and personal income tax is slim to none, so the governor and state lawmakers need to focus on costs they can control.”
For example, Washington has the second highest unemployment insurance tax in the nation, well above the national average.
“Our state’s employers, who foot all the unemployment insurance costs, pay $803 per employee each year, compared with the national average of $315. In South Carolina, where major components of Boeing’s new 787 are manufactured, employers pay $154.
Costs matter today more than ever, Brunell added. Whether it is a tax, government fee or new regulation, those who provide jobs and tax revenues must find a way to pay them and still compete with states and countries where costs are lower.
“They need to do the math and calculate their cumulative costs,” Brunell concluded. “Otherwise, we cannot sustain the job and economic growth we have enjoyed in the last three years.”
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AWB is Washington's oldest and largest statewide business association. Formed in 1904, its 6,600 members employ more than 650,000 workers. AWB also is the state chamber of commerce and the umbrella organization for more than 120 trade and professional organizations. While AWB's membership includes the state’s major employers like Boeing, Microsoft and Weyerhaeuser, more than 85 percent of AWB members employ fewer than 100 people, and one-third of our members hire fewer than 10.
