As the owner of two small businesses, I am terrified that the Legislature is going to raise taxes on us again. Our businesses are barely surviving — like virtually every small business owner I know. Yet, the government raised our L&I taxes and employment security taxes in the last three months and is talking about raising the B&O tax as well.
Every business owner and employee should know and protest these facts:
1. Washington is one of only four states that has a monopoly on L&I insurance. This makes our rates (that every employer and employee pays) uncompetitive.
2. Washington is so liberal in its unemployment compensation that if an employee is let go for incompetence, the employer is charged for their unemployment benefits (as well as paying the salary for the replacement!)
3. Washington is one of few states that levies a B&O tax against gross revenues. Most states tax profits, but we tax businesses just for doing business, even when they are not profitable. This is one reason why Washington has such a high business failure rate.
4. 77 percent of our legislators only have government sector experience, yet small business represents about two-thirds of our economy. With no private sector experience, legislators don’t understand the realities of business survival necessities (such as living within a budget).
As a result of the economy and increased tax burden, we have had to freeze salaries and reduce health coverage and still we are in the red at the end of the year. When businesses go under, employees suffer. The state can best help employees by reducing the tax and regulatory requirements on businesses so that they can thrive and continue to offer competitive jobs and benefits to individuals.
Cathy Mighell
Stanwood
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