WASHINGTON STATE — President of the Association of Washington Business, Kris Johnson, says that the threat of businesses leaving Washington state continues to grow.
According to a survey conducted by the Association of Washington Business, 44% of Washington business leaders are considering relocating their residence out-of-state, with 17% considering relocating their business entirely.
Johnson says that Washington state ranks 48th in the United States in business competitiveness, with many businesses considering relocation.
“This is a very real issue, so we can’t play chicken with the economy,” Johnson said. “We need to get back to having a simple, easy, and predictable tax and regulatory environment, and we need to make this an easier place to start, grow and keep a business.”
Following a 24-hour debate earlier this week, Washington state lawmakers passed a “millionaires’ tax” that would impose a 9.9% tax on income over $1 million.
Johnson says that the millionaires’ tax could be detrimental to the business landscape across Washington state.
“Does it make it an easier place to do business?” Johnson asked. “No, I think it’s a real challenge for us.”
Johnson says that he is worried about future innovators in the state as it pertains to a new income tax, and that people should take notice on the effects that it has on the state.
“This has been one of our two or three competitive advantages of not having an income tax, it’s why so much economic activity has happened in the state,” Johnson said. “Not having an income tax, having low-cost affordable power and having a skilled, trained, educated workforce, those have been our three key secret sauce ingredients. And now we’re about to take one of our key secret sauce ingredients offline.”
Johnson says he is disappointed by recent legislative activity and says that he wonders how an income tax can help support the growth of businesses in Washington state.
“What we know in Washington state is, every time the legislature comes back into session, as of late, they’re going to pass billions of dollars of new taxes,” Johnson said. “We need to stop the overspending, create a plan to grow our economy, and put that plan to work.”
