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Real 'change' needed for economic recovery
in Washington state
By Reps.
Norma Smith and Cary Condotta
In
Washington, we are blessed to have some of the most creative and
innovative employers in the country. Likewise, our employers are blessed
with talented employees who have the intellectual horsepower to help
them compete in a global marketplace.
Yet with our successes, there is a troubling trend. Washington state is
slipping in its competitiveness and ability to retain and recruit
companies - in aerospace and other industry sectors. After reading Peter
Callaghan’s column in the Oct. 1 edition of the Tacoma News Tribune
("Gregoire made the state’s case with Boeing, but said 'no' to shameless
begging"), we want to lay the case out – not beg – for state leaders to
consider the message of the addition of even 700 good-paying jobs the
Boeing plant could create would send to Washington’s beleaguered workers
and employers.
Whenever the Legislature is considering policies that impact employers,
the first question we should ask is: Does this create and retain jobs in
Washington? While we await Boeing’s decision on where to locate a second
Dreamliner production plant, we must keep our focus on all employers and
what we can do as a Legislature, and in our agencies, to save and
recruit jobs. State leaders must declare with a clear and unified voice,
"We want your business here, and we intend to provide the customer
service you need from state government to be successful."
We have a simple philosophy: Vibrant businesses create jobs essential
for the well-being of families across the state. Whether large or small,
our various employers are cornerstones of communities.
Washington must also put out the welcome mat and invite in new and
innovative employers. With an unmatched quality of life, our state
should attract the forward-thinking companies that will provide
much-needed family-wage jobs while pioneering and producing the
technology of the future. But we must be willing to identify barriers to
recruitment, examine competitor practices to leverage our strengths and
address our weaknesses.
This summer, we met with dozens of employers in Washington struggling
under the recession and asked what we can do to help. Repeatedly, the
same themes emerged: employers are overwhelmed with the regulatory
climate and cost of doing business in Washington. This must be a lesson
for Washington’s leaders and agencies to usher in a new culture of
change.
With strong leadership, we can begin to restructure state agencies to be
customer-focused and less burdensome. What if agencies and leaders,
instead of handing down more regulations and higher taxes and fees,
asked employers, "What can we do to help you responsibly achieve your
goals and create jobs?"
We believe state agencies must embrace meaningful streamlining reforms
to serve employers. The state should utilize every tool to encourage job
creation, while eliminating unnecessary red tape. Good-paying jobs
create local economic security and prosperity.
Additionally, it’s past time to take a long look at barriers Washington
puts in front of employers looking to hire more employees. Our
unemployment insurance system taxes are the sixth most expensive in the
nation. We also levy a unique gross receipts tax on businesses, which
taxes them regardless of whether they turn a profit. This tax also
disproportionately punishes small employers, making it harder for our
economic engine to add employees and grow their operations.
Our
workers’ compensation system is also one of the most costly and complex
in the nation. It is a national outlier in terms of administrative costs
and expensive pensions. Unbelievably, the state Department of Labor and
Industries recently proposed a 7.6 percent premium increase for 2010. A
tax increase on employers during a difficult recession, to pay for a
broken system badly in need of reform, is not sound policy. This will
take $117 million out of employers’ and employees’ pockets that could be
used to create jobs or increase pay to help offset the rising costs of
necessities, such as health care, food and housing.
Washington’s leaders and agencies must begin to address these and other
barriers to attracting and retaining employers, including Boeing’s
second production plant, right now – by not increasing the costs of
doing business and joining entrepreneurs to incentivize job creation.
Our economic recovery is at stake.
# # #
Tenth
Legislative District Rep. Norma Smith, R-Clinton, is the lead Republican
on economic development issues. Twelfth Legislative District Rep. Cary
Condotta, R-East Wenatchee, is the lead Republican on commerce and labor
issues.
For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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