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.