More than 60 executives representing Washington’s most recognized companies and start-ups, along with leaders of statewide and regional business associations, sent a letter to Governor Bob Ferguson and state legislative leaders today urging them to “review and revise recently proposed tax and budget proposals before enacting them into law this year.”
View the full letter and list of 60+ signers.
In the letter, these business leaders caution that “if approved, these proposals would result in the largest tax increases in state history, perpetuating a dangerous trend of unsustainable spending growth.”
They write, “We were encouraged by the Governor’s announcement that he would not sign the proposed wealth tax. We support the five priorities he outlined as fiscally responsible in these unprecedented times such as preserving the state’s Rainy Day Fund, and we agree with the Governor that we cannot just ‘tax our way out of here.’”
The letter cites national economic trends and uncertainty as reasons why Washington state cannot sustain continued tax and spending increases. The business leaders write, “Right now, we are at a time of economic uncertainty at the national and international level, and we know from our experience leading companies that uncertainty demands a laser focus on priorities and an honest assessment of where investments are most effective, followed by targeted reductions. The state cannot afford to measure its performance solely by dollars spent, but on actual outcomes.”
The business leaders further caution, “in a global economy, capital and jobs are mobile, migrating from market to market. For example, it is 30 percent less expensive to employ a software engineer in Vancouver, BC than in the Puget Sound. We have seen the effects of similar tax policies on a local scale, as Seattle’s “Jump Start” payroll tax has prompted the movement of thousands of jobs from Seattle to Bellevue and surrounding areas. Extending the JumpStart tax to a statewide payroll tax to support over-spending will prompt a similar response at the state level, with new and existing jobs moving to more business friendly states.”
The leaders “share the goal of creating communities that are safe, healthy, and vibrant” and they urge the lawamakers to “work with us to develop a budget approach that aligns with current economic uncertainties, preserving as much flexibility as possible to respond to the changing national and international landscape.
The leaders conclude, “Together, we believe we can aim to maintain a business climate where employers and individuals will continue to invest, create jobs, support philanthropic initiatives, and contribute to the economic and community vitality of the state. We all love this state. We want Washington to thrive, and we are eager to be part of its success. We stand ready to work with you in identifying a more productive path forward.”
View the full letter and signer list here.