Recent News & Upcoming Events

Too Little Discipline

Governor Gregoire and the state Senate have each introduced budget plans that rely heavily on fund transfers, reserve drawdowns, and sin taxes. The budgets extend spending trends that cannot be sustained, assuring future shortfalls. For more on these budgets, see the Research Council policy brief "Too Little Discipline," available at this link.

Real Estate Excise Tax

 The Research Council has released a brief on the state's real estate excise tax. The REET is among the nation's highest taxes on the transfer of real estate.

The tax raises the cost of housing, contributing to the state’s relatively low rate of home ownership. This is a particular hardship for first-time home buyers. The higher cost of housing and the burden of the REET on businesses reduces the competitiveness of the state’s economy.

The brief can be downloaded by clicking this link.

Wallowing in Sin Taxes

The Washington Alliance for a Competitive Economy has released a competitiveness brief titled: “Wallowing in Sin Taxes." The brief argues that taxes on cigarettes, liquor, beer, wine, soda, candy, gum and gambling are not a sustainable solution to the state’s structural budget gap. Modeling with the WRC/REMI model of the Washington economy indicates that a package of sin taxes generating $783 million in the upcoming biennium would cost the state on the order of 3,000 jobs by 2010.

The brief can be download through this link.

Pay or Play

The Research Council has released a policy brief on “pay or play” health insurance. Under a pay or play scheme, those businesses that did not provide employees a rich plate of health care benefits would be taxed to support the state’s basic health plan. The result would be a substantial payroll tax on some state businesses, raising their costs and hurting the overall competitiveness of the state’s economy.

Our simulations show that pay or play could reduce employment in the state by 9,000 in 2010 and nearly 17,000 in 2015. Those earning the minimum wage are the most likely to lose their jobs.

The brief can be downloaded through this link.