Business Regulations
Business Regulations
Tax Structure
Washington’ s employers are under constant tax pressure. Washington collects the fifth highest business share of state taxes, and the seventh highest business share of state and local taxes among the 50 states( Council on State Taxation). It is imperative that statewide and local officials resolve the unfair tax burden on small business in a way that bolsters Washington’ s ability to attract, maintain, and grow economic opportunity statewide, compete with lower-cost states, and uphold certainty and fairness for taxpayers.
Tax incentives from sales and use tax have been extremely beneficial to the establishment and growth of small business in Washington. The manufacturing and equipment( M & E) tax exemption was instituted to help small manufacturers make investments in equipment that would help spur growth in jobs and revenue. The most recent review of the M & E exemption( 2008 Manufacturing Tax Study) showed that in a four-year period the exemption created 58,100 new jobs and added $ 27.5 billion to the economy. The success of the M & E exemption is a good example of how tax preferences, incentives and exemptions, can benefit the state’ s economy. in a four-year period, the m & e tax exemption created
new jobs and added
58,100 $ 27.5 billion to the economy.