OLYMPIA – As the economy begins to rebound from the worldwide recession, Washington state remains well-positioned to help lead the nation’s recovery. In fact, Washington’s tax system is particularly favorable to small business and entrepreneurs, according to the Small Business and Entrepreneurship (SBE) Council, a nonprofit small business advocacy organization.
The SBE Council recently ranked Washington as having the fifth-best tax system in the nation on its “Business Tax Index 2010.”
State representatives Kevin Van De Wege and Steve Tharinger (both D – Sequim), welcome the latest ranking as a further sign that the state is moving forward on the right track.
“I’m delighted that the SBE Council thinks our state is a great place for businesses to locate and invest,” Van De Wege said. “Although times have been tough across the entire country, we’ve taken steps to help protect our small businesses and encourage entrepreneurship.”
All 50 states plus the District of Columbia were ranked for the Business Tax Index 2010. Tax measures such as income, property, unemployment and various consumption taxes were used come up with a “tax score” for each state.
“Small businesses and entrepreneurs create jobs,” Tharinger said. “Being ranked near the top of the SBE Council’s list will definitely attract more business – and jobs – to our state.”
Earlier this year, Washington’s Legislature passed a bill that cut unemployment taxes for 90 percent of businesses in the state. Additionally, the bill increased the weekly unemployment benefit by $25 for those who lose their job in 2011.
“By reducing unemployment taxes, we help out our small businesses in particular,” Tharinger said. “But increasing unemployment benefits also helps businesses because of the multiplier effect. Every $1.00 paid out in unemployment benefits generates $1.64 in economic activity.”
The legislation represents a $300 million reduction in unemployment taxes for Washington’s businesses. It was signed by the governor in February.