Double-digit growth in taxable sales for construction, building materials, and cars led improved sales for the state’s industries and retail sectors.
In other economic news for the state, Moody’s Investors Service and Fitch Group both upgraded
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Are the two related? To a certain extent.
Standard & Poor, which earlier continued its stable credit rating for Washington said the state's sales-tax based revenue system is less sensitive to economic cycles than a system that relies primarily on income taxes, Jason Mercier of the Washington Policy Center notes.
But S&P also cited the state's relative well-educated workforce, strong financial policies and practices and well-funded pension plans. McIntire said Fitch also cited the state's economic and revenue performance and passage of a biennial budget with adequate reserves. Fitch also said the state's tax system makes it "particularly vulnerable to reductions in consumer spending."