poutinggirl.jpg
Pout all you want, Washington goes easy on taxing businesses compared with 45 other states.
The state Department of Commerce is trumpeting the Small Business

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Washington Gets Props for Being Business-Friendly, Despite All the Whining From Businesses

poutinggirl.jpg
Pout all you want, Washington goes easy on taxing businesses compared with 45 other states.
The state Department of Commerce is trumpeting the Small Business and Entrepreneurship Council's just-released 2010 Business Tax Index. The Council ranks the 50 states in order of best to worst tax structures for small business owners, and the Evergreen State came out fifth.

Interestingly the Index undermines the position of business advocacy groups like the Association of Washington Business and the local chapter of the National Federation of Independent Business. Both organizations regularly go to Olympia claiming Washington severely overburdens businesses with taxes, something the Index clearly refutes.

But the Index does give those organizations a huge boost in fighting Initiative 1077--Bill Gates, Sr.'s proposed income tax.

One of the main reasons for Washington's high ranking is our lack of an income tax. SBEC says, in explaining the rankings, that "income taxes are the most damaging levies, as they impact incentives for working, investing and entrepreneurship."

Patrick Connor, NFIB state director, explains that three-quarters of all small business owners treat their company's revenues like personal income. So if a state has an income tax, they end up paying both income and business taxes. For that reason, Connor says, he is staunchly opposing 1077. (The initiative includes a proposed business tax exemption, which Connor claims will only help businesses taking in less than $200,000 a year.)

DOC promoting something that bashes the long-sought income tax so aggressively is a big win for people like Connor. But it's certainly not going to make life easier for him and other business groups trying to get other taxes, like unemployment and workers'-comp premiums, reduced.

 
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