Washington State Ranked Sixth Best Tax Environment in the US
In a recent report, the Tax Foundation ranked Washington state among the top 10 best tax climates in the country. Coming in at number six, the Evergreen State held onto the same place it occupied in the two previous annual reports.
That is excellent news for anyone in Washington who is considering pursuing a career in business, as it once again underscores the state's efforts to make itself one of the most hospitable places for commerce in the country.
The foundation makes its assessments after collecting data on more than 100 tax provisions in each state. It then takes that data and turns it into one score, making the massive amount of information much easier to digest.
Having researched and monitored fiscal policy at the federal, state and local levels since 1937, the Tax Foundation uses time-tested methods for its evaluation.
"The goal of the State Business Tax Climate Index is to start a conversation with policy makers about how their states fare against the rest of the country," Tax Foundation Economist Scott Drenkard said in a statement. "With this report, we're asking, how well is your tax code structured? Are businesses in your state spending too much time complying with onerous tax provisions? Are you double taxing things you shouldn't?"
Washington's business climate
By earning such a high ranking, Washington should continue to be an appealing place for local, national and international businesses, especially in the aerospace and technology industries, for which the state has traditionally served as a hub.
One of the primary selling points for Washington, which is also one of the reasons it has ranked so high on the list in recent years, is its lack of an income tax. With businesses always vying to recruit the most talented workers from across the country, the added bonus of lower personal taxes only serves to make that competition easier.
Another factor in Washington's rankings was the relative ease with which businesses were able to navigate their way through the tax environment. In some states, like New York and New Jersey, which ranked 49th and 50th respectively, onerous tax regulations were among the reasons they found themselves at the bottom of the list.
This article is sponsored by Western Governors University, a nonprofit, accredited, online university. WGU offers online bachelor degree programs in business and online MBA programs. To find out more, please visit www.wgu.edu/wisecareers_business.