Dubious Study Touts Washington Tax System
Posted Wednesday, June 08, 2011 by Ronald L. Bueing.
Recently, the Small Business & Entrepreneurship Council (SBEC) issued a study that touts Washington as having one of the best state tax systems. Our governor will again be insufferable in quoting this severly flawed study - but do not be fooled. The reason once again for this extraordinary rating - the lack of a state income tax. Washington is touted as having the fifth “best state tax system.” But what are the true facts.
Washington has an above average per capita tax burden - higher than all but 12 other states. As a percentage of income Washington is more middle of the road, but is still higher than 24 other states. Washington also has one of the highest overall ratios of state taxes paid by business, surpassing 35 other states. If Washington has one of the higher state and local tax burdens and businesses pay a greater share of that tax burden, it is hard to understand how Washington could have the fifth best state taxing system for businesses.
It’s simple. We don’t.
