| When Boeing announced it was moving its corporate headquarters out of Seattle, Gov. Gary Locke was taken by surprise.
He shouldnt have been.
For years, Boeing executives have said that Washington is a difficult place to do business. The high taxes and regulations supported by Locke and other Democratic governors and legislators make for a very business-unfriendly climate in this state.
Locke and legislative Democrats reject criticisms of Washingtons business climate. They claim Republicans are only trying to make political hay of the Boeing move. But the facts speak for themselves:
Washington has the eighth highest employment costs for manufacturing in the 48 industrial states. (Source: Expansion Management Magazine 2000 rating.)
Washington has the highest business taxes among the Western states. (Source: Utah State Tax Commission, data for FY 97-98.)
In the year 2000, Washington ranked highest in the nation for unemployment insurance tax liability. (Source: Laurdan Associates, Inc.)
Property tax increases in Washington have risen by 28.4 percent since 1997 that is more than four times the rate of inflation. (Source: Washington Institute Foundation.)
Gov. Locke and his fellow Democrats also deny that Washingtons business climate had anything to do with Boeings move. But all you have to do is read what Boeing executives have said over the past decade. Clearly, our business-unfriendly climate is of great concern to Boeing. Consider these statements:
Debby Hopkins, former Chief Financial Officer at Boeing, in 10/8/99 speech to the Greater Seattle Chamber of Commerce:
Washington ranks ninth highest of all 50 states in fees and assessments on businesses. Compared with the six other Western states, we pay the highest business taxes as a percentage of gross state product. Our labor costs in Washington are among the highest in the nation.
When you add it up, its not the best environment for business. When we look at where to grow our business, well look everywhere: around the country, around the globe. We want to grow in Washington. Unfortunately, right now, Washington isnt a top competitor. The business climate isnt right.
Seattle Post-Intelligencer, February 1993:
In a September 1991 speech, [former Boeing Chairman Frank] Shrontz warned that unless the states business climate improved, Boeing would take its business elsewhere.
When Boeing tried to expand in Everett, for example, the permit process alone took 2 1/2 years, longer than the two years spent building the original plant. Boeing also spent an estimated $50 million in mitigation fees for a range of purposes, from road improvements to housing.
We have a major problem in Washington our taxes and regulations are so burdensome and so hostile to business that we are losing jobs and opportunities for economic growth. Yet despite our reputation as a business-unfriendly state, Gov. Locke and legislative Democrats refuse to recognize the problem. In short, they are in denial.
Before we lose any more jobs or scare any more businesses away, we must work to change Washingtons business-unfriendly reputation. That means lowering taxes and reducing excessive regulations. If we dont, we can expect more Boeing-like bombshells in the future. |