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Washington’s business elite is finally acknowledging what employers have been warning about for years: taxes, regulations and government red tape have made the state increasingly expensive and unpredictable for businesses.
Challenge Seattle’s new regional jobs plan paints a grim picture. Central Puget Sound lost nearly 7,000 jobs in 2025, Washington’s cost-of-doing-business ranking plunged from 32nd to 47th, and the state now has the nation’s worst five-year business survival rate. The report itself points to Seattle’s JumpStart payroll tax, higher B&O taxes, the Advanced Computing Surcharge and other state and local taxes as contributing to the problem.
But, as Seattle Red’s Jason Rantz points out, the report gets strangely timid when it comes time to assign responsibility or propose solutions. Despite identifying the taxes, it doesn’t call for repealing them. Instead, its 20 recommendations include a new tax strategy, economic-impact analyses, policy reviews, government “business concierge” positions and still more coordination.
Rantz also highlights what he calls an odd guest list: Democratic legislative leaders House Speaker Laurie Jinkins, Senate Majority Leader Jamie Pedersen and House Majority Leader Joe Fitzgibbon are among those acknowledged for contributing insights, alongside Seattle, King County and Governor’s Office officials. Challenge Seattle notes that participation does not mean endorsement of the report.
Former Democrat Gov. Chris Gregoire, who leads Challenge Seattle, writes that Washington has become too difficult to build in, too expensive to operate in and too unpredictable for businesses to plan. Bottom line: the group correctly diagnosed the disease, but instead of confronting the taxes and policies it identifies, it prescribed another round of studies, committees and government busy work. Read more at Seattle Red.
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