Robin's Ruminations

Needless to say, I could write volumes on this topic and not even scratch the surface.  In any event, here is a quick overview.

B&O Tax Increase
There is some talk of a B&O tax increase this year.  The last time the legislature increased business taxes to balance the budget was in 1993.  In November 1994 many incumbents were fired as a result.  With luck they'll remember that and only close some loopholes this year instead of saddling businesses with a major increase.  After all, we are the people who create the jobs in this state and pay the wages of every last state and local employee.

Sales Tax
Some legislators are considering either increasing the state portion of the sales tax from 6.5% to 7.5% and others are considering expanding the services on which the tax is applied.  Personally, I wouldn't mind it if they applied sales tax to process servers BUT only if they reduced our B&O tax to the same rate applied to retail sales.  That may sound crazy but it would actually improve our bottom line.  Of course it is crazy because they'll never do it.

Unemployment Tax
If you have employees you may have noticed an increase in your UI tax this year - even if you have a spotless record.  The UI tax is made up of two parts.  First is your experience record and the second is the social-cost tax.  Due to the economic downturn the social-cost part has increased dramatically, doubling and tripling in some cases.  However, Senator Holmquist and Representative Condotta are proposing a formula that will smooth out the increases over several years.  The same amount of money will be collected but over a longer period of time.  Not a bad idea at first blush.

Job Creation Tax Credit
This idea comes from Governor Gregoire - which means I don't trust it.  The idea is to give businesses a one time $2,000 B&O tax credit for each full time position they create and which stays in place for at least a year.  Once again, not a bad idea but there must be a catch to it somewhere.

Independent Business Association
This is a blatant plug for the IBA.  For a few bucks every year you receive one of the most informative newsletters around.  If you're not a member you should be.  I've been a member for years and am thankful they are there to take my money.  They represent small business in Olympia and, last time I checked, that includes all of us.  Check them out by clicking here - www.ibaw.net.