Washington Business Summer 2018 | Washington Business | Page 16

from the chair
Is Washington Open for Business?
Michael Senske
As business leaders, we make decisions every day about
who we work with and why. We decide who to hire and who
to promote within our companies. We select vendors and
outside partners that help our businesses prosper — and
boost the bottom line of those partners, as well.
We make these decisions for a host of reasons, but they always
point back to one fundamental question: How do we grow?
It’s unfathomable to imagine a business leader saying, “We
don’t want to grow.” And yet that’s the message that our state
and local leaders appear to send when they make decisions
that end up creating a challenging tax and regulatory
environment.
The Seattle City Council’s decision to enact a “head tax” on
employers — literally a tax on job-creation — is just the latest
example of our government leaders sending a message that
growing the economy isn’t really a priority.
We’re fortunate that parts of Washington have been growing
in recent years, but AWB has devoted considerable time and
energy calling attention to the fact that much of rural Washing-
ton has not experienced the same kind of economic growth.
16 association of washington business
And even in those places where the economy is flourishing,
we shouldn’t take growth for granted. Prosperity is never guar-
anteed. It must be nurtured.
So, it was encouraging to hear so many legislators agree
during the last legislative session that rural job creation is a
priority. That’s an important first step. The next step is to follow
through with actions that support growth.
Judging by the decisions our elected leaders
make, I sometimes wonder if they understand this.
I wonder if the state is really “open for business.”
Washington is a great state with many advantages,
but we know from the Competitiveness Redbook
that we’re also a high-cost state for business. Com-
panies choose to locate here for other reasons, often
despite the relatively high cost.
Even so, legislators consistently debate new and
higher taxes, including a capital gains tax that
would not only target the so-called wealthy but
would also hit small-business owners who are
relying on the sale of their business to fund their
retirement. It has yet to pass but we expect the
issue to come up for debate again during the 2019
legislative session.
At the same time, lawmakers and others continue
to push for a carbon tax as a means of addressing
climate change, even though the benefit to the
environment is highly debatable and damage to
the state’s economy could be considerable.
And for the second consecutive year, lawmakers came close to
giving manufacturers a needed boost by lowering the business
and occupation tax rate — but ultimately failed to do so.
All of this has a chilling effect on investment.
It’s true that we need to take a sensible approach to climate
change. It’s in everyone’s interest, including employers. And
we need appropriate regulation to protect everyone, including
employers. It’s incumbent on business leaders to understand
this and to take a seat at the table on these important debates.
Likewise, it’s incumbent on elected officials who say that
Washington is “open for business” to make their actions match
their rhetoric.
It’s the best way to build a sustainable economy where
everyone can prosper.