Two different surveys this week came to virtually the same conclusion: Two-thirds of Spokane County residents and business owners are considering a move to another state.<\/p>\n
The Association of Washington Businesses and Greater Spokane Inc. both released results of surveys that paint a troubling picture of the current business climate following a series of tax hikes in the Evergreen State.<\/p>\n
According to the AWB survey, 24% of businesses are seeking to relocate out of state. Meanwhile, 55% of the business owners statewide, and 67% of those in Spokane County, are now considering a move out of the state in their personal capacity.<\/p>\n
\u201cIt\u2019s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won\u2019t really leave, but that would be a mistake,\u201d AWB President Kris Johnson said in a news release. \u201cWe are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion.\u201d<\/p>\n
GSI\u2019s survey found that 59% of Spokane residents, and 68% of Spokane County residents, are actively considering moving out of the area, though notably this sentiment hasn\u2019t changed significantly from when the same question was asked last April.<\/p>\n
Among those who did recently say they were actively considering moving away, 21% pointed to taxes as the main reason, followed by \u201cgovernment\/leadership\/politics\u201d at 19% and \u201ccost of living\/housing\u201d at 17%. <\/p>\n
Steve Scranton, economist at Washington Trust Bank, said he has spoken to several clients who are considering a move after the state hiked its estate tax, which is paid on money left after someone dies.<\/p>\n
Washington lawmakers increased the estate tax to 35% before it was pared back to a sliding scale of 10-20% starting July 1.<\/p>\n
The state also has a 7% capital gains tax on the sale of investments that exceed $250,000 and the recently enacted millionaires tax that will add a 9.9% tax on households with wages that exceed $1 million starting in January 2028.<\/p>\n
Asked about the two survey results showing two-thirds of Spokane-area folks contemplating a move, Scranton said he was not surprised.<\/p>\n
\u201cThat, in one sense, is the logical economic response,\u201d he said. \u201cThe upper-income people are the most mobile.\u201d<\/p>\n
But the exodus, if one truly occurs, is not exclusive to those who live in Washington.<\/p>\n
\u201cNationally, people are leaving the West Coast and the East Coast. They are moving to Texas, Florida and the South,\u201d Scranton said. \u201cIt\u2019s a natural response. When you have these distortions within a state, people will reposition to a more advantageous state.\u201d<\/p>\n
Scranton agreed with the AWB\u2019s Johnson\u2019s sentiment on the survey.<\/p>\n
The \u201c68% is not a number to be ignored,\u201d Scranton said.<\/p>\n
The higher taxes suggest that Washington is not business friendly.<\/p>\n
\u201cWhether true or not,\u201d Scranton said, \u201cthat\u2019s clearly the image.\u201d<\/p>\n