According to a recent report published by the Association of Washington Business, Keeping Washington Competitive: The Need for a Healthy Business Climate, several factors, in addition to a deteriorating transportation system and a challenging regulatory climate, are seen as obstacles to business success in the state of Washington. Here are some additional factors:

Taxes
• Washington is the only state among the 26 (states in which Boeing has a significant presence) to tax labor and materials for construction. The other states tax materials only.
• Washington ranks 2nd (only behind the District of Columbia) in the length of time a worker remains on unemployment.
• Washington ranks 5th highest in unemployment insurance costs.

Regulations
A study by three Clemson University economists rates Washington as the 5th most heavily regulated state in the nation.

Housing
• Washington ranks 40th in home ownership rates (i.e. only 10 states are worse);
• Housing costs are exceedingly high, and not just in Seattle or King County.
• Tacoma ranks 158th of 192 cities on a housing affordability index, based on the percentage of homes sold that are affordable for a median income family; Vancouver ranks 168th.
• Moderate-income families are left with no choice but to stay in rental housing.
• Employees commute farther to find lower-priced housing, resulting in increased traffic congestion.
• Employers find it harder and harder to attract and retain employees.
• The state’s Growth Management Act has significantly reduced the amount of land available for building new homes and apartments
• The slow permitting and entitlement processes destroy the incentive to develop land and build new homes.
• The Washington Institute Foundation concluded that almost $1 of every $4.50 paid by a new homeowner pays to cover the cost of government regulations and fees.