The Council on State Taxation (COST) reports Washington’s business tax burden ranks near the top among states in the nation. The latest COST analysis finds Washington business taxes represent 5.5 percent of private sector Gross State Product. Nationally, the U.S. average is 4.5 percent.
We’ve written about the COST report each year, most recently here. The business-tax share of GSP is unchanged from last year for Washington; the U.S. average this year is down 0.1 percentage point.
AWB writes about the study in this week’s Fast Facts.
In Washington, businesses pay an average of $8,000 in taxes per employee, far higher than the national average of $5,800 — making Washington the third-highest in taxes per employee.
Washington has the seventh-highest tax burden — employers here pay 57.6 percent of taxes collected in the state. The national average of 43.9 percent.
The COST report is one of the best and most thorough comparative analyses of the taxes paid by business.