washington business
“ Unpredictable and inconsistent processing timelines have a real economic and personal impact on our businesses and on their employees.”
— AWB Government Affairs Director Emily Wittman
AWB Government Affairs Director Emily Wittman has advocated for regulatory reform at the Legislature and across the state.
regulations by industry
In Washington, the regulatory burden on health care, manufacturing, agriculture, and energy-dependent industries— along with small and medium businesses across sectors— exceeds the national average, and in some cases, is among the highest.
• Health care: Administrative compliance consumes an estimated 25-30 % of total spending.
• Manufacturing: Employers navigate environmental policy, labor mandates, taxes, and infrastructure constraints.
• Innovation and emerging industries: Technology firms face rising taxes, expanding data-privacy requirements, and emerging AI rules— with startups especially sensitive to shifting regulations.
• Small businesses: Small and mid-sized businesses in Washington lose about 2.75 jobs annually due to direct compliance costs.
possible solutions
British Columbia offers a powerful example of what can happen when government regulators get serious about reforming regulation. In the 1990s, economic growth and employment in the province lagged the rest of the country, according to a paper published by the Mercatus Center at George Washington University. As the government looked for ways to raise more revenue, it sought to regulate more sectors of the economy. This led to all kinds of regulations, from regulating the size of televisions in restaurants to the number of par-four holes in golf courses.
In 2001, a new government appointed a minister of deregulation and eventually became a leader in reducing red tape. The province eliminated 157,000 regulations for citizens and small businesses between 2001 and 2017, reducing the overall burden by 47 %. During one three-year period, British Columbia gained a full percentage point of economic growth.
Idaho is another example of what can happen when officials get serious about reducing red tape. The state removed or simplified more than 75 % of its regulations and saw the fourth fastest economic growth in the country from June 2023 to 2024.
40 association of washington business