March 8, 2010 in News, Idaho

Idaho courting tax-weary Washington companies

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OLYMPIA – Idaho Gov. Butch Otter is suggesting Washington businesses come over to his side of the border if taxes go up like they have in Oregon.

In a “love letter to our neighbors,” Otter argues that Idaho has a better plan than other states for handling the recession: “Predictable tax and regulatory policies are what our employers need in order to maintain their operations through this rough patch.”

He jabs Oregon voters, who last month voted to raise income taxes on people making more than $125,000 and business taxes. After that passed, Oregon businesses started calling Idaho, he said.

“Legislators in the state of Washington are talking about even bigger tax increases to tackle a budget deficit that figures to be as big as Idaho’s entire state budget,” he says. “We are now reaching out to hundreds of Oregon businesses and will do the same with those in Washington if the Legislature there follows Oregon’s lead.”

Otter’s letter essentially echoes the warnings of fellow Republicans in Washington who opposed a package of sales and business tax increases this weekend in the state Senate. Sen. Mark Schoesler, R-Ritzville, called the proposals to raise sales, business and cigarette taxes the “Idaho Economic Development Act.”

Gov. Chris Gregoire’s office refused to respond directly to Otter’s jabs at increased taxes in Washington, which Gregoire has called for as part of a balanced approach to solving a $2.8 billion budget shortfall.

Instead, Gregoire spokeswoman Karina Shagren repeated the governor’s oft-repeated statement that Washington rates highly in Forbes Magazine and Pew Center lists of good places to do business.

“Our Department of Commerce is currently in discussions with several companies interested in locating or expanding in Washington state,” Shagren said.

Senate Majority Leader Lisa Brown, D-Spokane, said she wasn’t surprised that Otter might try that tactic to recruit businesses, but believes companies make their decision to relocate or expand on a wide range of factors, not just a tax increase.

If not, then businesses from California would be moving here because of that state’s budget problems, she said.

Five comments on this story so far. Add yours!

• 

  Justin_Galloway on March 08 at 8:54 p.m.

  Businesses are welcome to move to Idaho if they like. They are also welcome to pay their business income tax. (Not to mention their employee’s individual income tax that they will now have to pay now that they don’t work in Washington.)

• 

  misjustice on March 08 at 9:02 p.m.

  Yeah, the business and personal taxes in Idaho are but 2 reasons why I moved my small business to Washington almost 10 years ago…

  Even with the recent increases proposed by our state legislators, Washington is still a more tax friendly state to do business in.

• 

  PhiltheBibliophil on March 08 at 9:57 p.m.

  If Washington would actually manage and spend the taxes we provide with any sense of fiscal responsibility this would not even be an issue. This State should be awash in money! But the inepitutde of corrupt Government officials and mismanagement of appropriations is ludicrous! Wake up Washingtonians, you are being Hoodwinked! If the Government in this state taxed you 100% they would find a way to spend it and still want more! I have to live within my means, why can’t they?

• 

  drdocument on March 09 at 5:13 a.m.

  Bibliophil is correct that even 100% taxation would not be enough. Politicians, once in power, cannot resist the temptation to “do something” to “help” whether really needed or not. It’s human nature.

  We as voters have a responsibility to help our elected officials resist that temptation by limiting what they can spend.

• 

  IHike4Fun on March 09 at 8:23 a.m.

  If Washington is a more tax friendly place to do business why is Cabellas in Post Falls and not Liberty Lake? The Post Falls business park seems to be building up nicely with other large businesses that must be finding Idaho tax laws more business friendly than Washington.