Today Washington is competing with other states and with other countries for business investment and for jobs.  We are competing to maintain the companies we have, encourage our existing companies to make additional investments in our state and attract new company investments to our state.  One of our biggest challenges is with Boeing and their decision to build the second 787 line outside of Washington.  But we have the same challenges with all of our existing businesses.  And we have even larger challenges with attracting new company investment.

My vision for Washington is to continue to develop our assets.  Our agriculture resources, cheap energy, water, technology workforce, lack of personal income tax, and close access to Asian markets are assets that easily come to mind. But at the same time we need to address those elements that make us less competitive with other states and countries.  The biggest today are: high employment taxes (Workman’s compensation and unemployment), high minimum wage, regulatory environment, traffic congestion issues and a B & O tax on gross receipts.  We need to eliminate our disadvantages or at least minimize them so we are not at a disadvantage to our competitors.

Over the long term we need to decide on the industries and the businesses that we want to maintain and attract.  Washington State will work in conjunction with those industries to understand the competitive advantages the businesses need to be successful.  By attracting businesses and creating a stable business environment, we can strengthen our economy and create jobs.

There are three things a state can do to support a healthy and growing economy: be fiscally responsible, have a competitive business environment, and have great education.

Today Snohomish County has a 10% unemployment rate.  If you count those who are so discouraged they’ve stopped looking for work, the employment rat is a staggering 17%.  CEO magazine has ranked Washington State as 40^th in the country in attractiveness for business investments and job creation.  That is a nightmare.

Some of the issues that impact Washington’s competitive position are:

• Washington has the second highest Workman’s Compensation in the country.
• Washington has the second highest unemployment taxes in the country.
• Washington has the highest employment taxes in the country.
• Washington has the highest minimum wage in the country.
• Washington B &O tax is on business gross income, not profitability.
• Washington has increasingly deteriorating traffic congestion.
• Washington is in need of regulatory reform.

Solution

• Reduce employment taxes to be competitive with other states.

• Support I-1082 allowing a private Workman’s Compensation alternative to augment our current state system.

• Reform unemployment insurance to be more in line with national norms.

• Pursue alternatives to the B&O tax that would allow for a deduction for the cost of sales.
• Prioritize Transportation spending to eliminate choke points and improve access to our businesses in our road system.
• Support regulatory reform and modernization.
• Improve our Education results.