“I’m leavin’ on a jet plane … don’t know when I’ll be back again . . .” Make no mistake: If the Washington Legislature ends up where the majority party is taking it, Boeing will not build its next airplane here.
This would be lethal to our economy; after all, each Boeing job supports 21/2 spinoff jobs, from sandwich shops to small airplane parts manufacturers.
And it’s not just Boeing; employers large and small are under fire from Olympia. Unless we reverse course the result will be more jobs lost – very possibly your job.
So how did we get here? It’s a story worth considering if we are to stop this economic train wreck.
In 2003, my Senate Republican colleagues and I – then in the majority – authored legislation that lowered unemployment insurance and workers’ compensation costs and played a substantial role in Boeing’s decision to build its 787 in Washington. That bill also benefited small businesses and kept their payrolls here.
Fast forward to 2009. Jobs in Washington are vanishing, and many small employers are hanging on by a thread. Large employers are being wooed by other states. State government is in dire financial condition, as Washington’s declining economy is producing far less revenue than required to cover the 33 percent increase in state spending since 2005.
Yet the majority party doesn’t seem to grasp the connection between improving the business climate, as we did in 2003, and reviving the economy. Unless we nurture those companies, large and small, and work to keep them in Washington, we will have only ourselves to blame when someone finally turns out the lights.
The Legislature should be working tirelessly to preserve jobs. Instead we hear talk of new “stimulus” and “green” jobs – generally lower-paying, short-term jobs that may or may not materialize. As a 24-year small-business owner, I can tell you: It’s a lot easier to keep the jobs we have than to create new jobs.
Unfortunately, majority Democrats are heading exactly the opposite direction. Consider the bills they’re pushing:
• An “open secret” plan to raise taxes and/or send a tax package to voters rather than cut and reprioritize spending.
• Unemployment insurance fund raids, which could trigger new employer taxes.
• A bill prohibiting employers from communicating with employees about things like labor issues, Christmas parties and even charity drives.
• Job-killing “cap and trade” (some call it “cap and extort”) legislation that will tax employers out of business or chase them to Idaho.
• A new payroll tax to fund paid family leave. The tax can be passed to employees, and after one year the state can increase the tax amount to cover the program’s costs, including benefits, administration and other costs.
Anyone who thinks the 2-cents-per- hour starting price will not increase dramatically has never experienced government firsthand.
As if these bills were not enough, there are other policies that already make Washington a tough place for employers. The business and occupation tax is one of the few in the nation on gross rather than net income. Even if a small business experiences a net loss, it is taxed as if it made a healthy profit.
Washington also has the highest minimum-wage in the nation and nearly the highest workers’ compensation and unemployment insurance costs.
I often wonder when legislators will realize that scenic mountains and clear waters aren’t enough to keep employers who provide the jobs our people need. If the Legislature continues its tirade against them we can wave goodbye to those jobs – including the ones that will make the next line of American airplanes.
Rather than push job-killing policies, the Legislature should do all it can to retain jobs. We should make sure workers’ compensation and tax policies are reasonable, adopt reforms like affordable, market-driven health care and pursue policies that protect our environment without killing off industries.
There’s still time to keep Washington from turning out the lights. But the Legislature must wake up – and soon. Otherwise, that jet plane will leave faster than we think.
State Sen. Mike Hewitt, R-Walla Walla, represents the 16th District and serves as leader of the Senate Republican Caucus.
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