The Council of State Taxation last month published its analysis of business taxes across the country. As has been the case for many years, Washington’s business taxes rank among the nation’s highest. Table 4 (too large to embed here comfortably), on page 13 of the report, contains good summary information for the 50 states and D.C.
Here are some critical numbers from the table:
- Total Effective Business Tax Rate (taxes as a percent of Gross State Product)
- Washington = 5.5 percent
- US as a whole = 4.6 percent
- Taxes per Employee
- Washington = $7,600
- US as a whole = $5,800
You can find more on this study from the Association of Washington Business.
These numbers are worth reflecting on when considering the governor’s proposed $5.5 billion tax increase, which falls largely on employers.