Business taxes in Washington continue to rank well above the US average, as reported by the Washington Research Council in a new policy brief. Here’s the WRC brief comment:
In fiscal year 2019, Washington state’s tax code relied heavily on businesses, which paid almost half of state and local taxes. Washington businesses paid nearly a quarter more in state and local taxes per employee than the average of their counterparts in other states. On all measures, Washington ranked at or above the national average, including annual business tax revenue growth, taxes per employee, business taxes as a share of economic activity, and the share of total state and local revenue paid by business. Property, sales, and business and occupation taxes accounted for most of the state and local tax burden.
As we’ve written, taxes, though not necessary to balance the state budget, remain on the 2021 legislative agenda. Not only are they not necessary to sustain state spending, public opinion weighs heavily against tax increases as households and businesses struggle with the lingering COVID recession.
Much more detail in the WRC brief.