Celebrating Taxes and Economic Development

OK, I’m going to continue my modest proposal/rant from yesterday about getting everyone on board if we want to truly achieve our vision for a prosperous metropolitan region. I was at the Leadership Tomorrow Economy Day today, where the 80 young leaders spend a day learning about our region’s economy, and it was fascinating to listen in on the conversation.

Who Cares? I’ve Got Expedia.

So, apparently, Seattle has high “tourism taxes.”

Only Chicago imposes more taxes on travelers than Seattle, according to a national study of car rental, hotel and meal taxes in the 50 largest U.S. cities. Seattle, with nearly $38 in total taxes on travelers, trails only Chicago, at nearly $41 per day. The U.S. average was $29.71

Or do we? 

The Arts Don’t Matter During a Recession

Or do they?

That’s been a relatively visible debate at the local, state and federal level over the past year, as government struggles to reduce costs and keep taxes down despite falling revenues. It can be hard for elected officials to support even a measly few million dollars here or there for arts when education, health care and everything else is getting slashed and gutted. And we know this is happening with individuals as well, as they shift their giving to different priorities.

True, but…

Perhaps you’ve heard – Washington is the best state in America to start a business.  US News and World Report just the other day ranked us #1, ahead of Virginia, Colorado, Texas and Nevada (and all the other states of course).

The article rightly pointed out our productivity here, our adoption of alternative energy, and our tech-intensity.  Interestingly, it also said we are #1 among the states in adoption of energy efficiency, which runs counter to the conventional wisdom that our low energy prices make us naturally less likely to engage in energy efficiency projects than higher-cost states.

But…

Another report shows we’re highly taxed

A report by the Washington Research Council / WashACE says Washington remains near the top in business tax burden. We rank 14th highest of the 50 states in the effective tax rate on business, and 13th highest for business’s share of state and local taxes.

The latter is a key indicator of our Regional Competitiveness Idicators, which regularly show that Washington’s burden on business is much higher than our peers.