Area legislators indicate support for tax credit for economically depressed counties.
But Tharinger ridicules.
Jefferson County could use a break. A Pierce County legislator wants economically struggling counties like Jefferson to get a tax credit equal to the new tax on jobs recently passed in Seattle.
Even more ambitious plans to help rural counties may be in the works.
Senator Steven O’Ban, a Republican representing Pierce County, aims to stimulate rural job growth through a $275 business and occupation tax credit to employers for each new qualifying job they create in those counties suffering the highest unemployment rates. To qualify for the credit, a job position would have to pay more than the county’s average wage.
O’Ban is preparing the legislation for the 2019 session and wants the credit to take effect next year.
O’Ban’s proposal comes in response to Seattle’s imposition of a $275 tax on full-time jobs at the city’s large employers. Business leaders and legislators have expressed fears that the adverse economic effects of the tax and the hostility being expressed against the city’s successful businesses could ripple across the state. “Washington shouldn’t lose jobs because our largest city’s tax policy punishes job growth,” O’Ban says on his official website.
“Our rural counties have low cost housing and a low cost of living,” he said in the press release announcing his plan. “Concentrating our jobs in one metro area isn’t in the best interest of the state. It benefits everyone to encourage companies to move out into rural areas. No one’s going to have to sit in a two-hour commute or pay a toll in Aberdeen.”
Or Jefferson County, which is suffering an unemployment rate of 6.4%, almost 30% higher than the state average of 4.8%.
Jefferson County also suffers from low wages. According to the Washington Employment Security Division, the average annual wage in Jefferson County was $36,381, far below the state average of $59,073.
Other counties shown in green stand to benefit under O’Ban’s legislation.
Pierce County recently announced its intention to extend a tax credit for each “family wage” job created.
Port Townsend Free Press reached out to the legislators representing Jefferson County for their response to O’Ban’s proposal and found qualified support for the idea, no outright opposition and even more ambitious plans to boost rural economies.
Mike Chapman(D), State Representative for District 24, said in a written response to The Port Townsend Free Press: “While this may seem like a good idea to spur economic growth in rural Washington, and while I would probably vote for it if the bill makes it through committee and comes to the full House for a vote, as the Chair of the House Democrats rural economic development team it is not an approach I would champion. I’m much more committed to long-term, permanent B&O tax reform. A reform I’ve been working on the first two years I’ve been in the Legislature would eliminate all B&O tax for about 80% of the businesses in Washington and even a higher percentage in the 24th Legislative District and all of rural Washington. This reform would spur economic growth, provide meaningful tax relief and lead to increased wages and new jobs in rural Washington. It’s a heavy lift, for sure, but one I remain committed to as long as I’m serving in the Legislature.”
Senator Kevin Van De Wege (D), through his Senior Communications Specialist, Rick Manugian, released the following statement: “Good local jobs always have been, and always will be, my number-one priority. I look forward to working with my colleague, Sen. O’Ban, and others on any efforts to create jobs. We have some options for tax credits in this state, and Rep. Mike Chapman has been a leader in small business tax credits. I’m especially supportive of Mike’s efforts because his knowledge of our district puts him in a position him to devise solutions that could create jobs that may be more relevant and practical for our local communities than a statewide, one-size-fits-all approach. We are fortunate to have Mike working for us.”
Steve Tharinger (D), State Representative for District 23, did not respond to our request for his views in time for the first publication of this story. We have since received his response and here it his. He sets himself apart from his challenger, Jim McEntire, whose position follows at the end of this report:
Writes Tharinger: “Creating jobs and opportunity in rural Washington is my top priority. It’s been a pleasure working with my seatmate, Rep. Mike Chapman, who’s leading the effort on rural development. What we’ve learned from touring the state and attending economic development summits in places like Aberdeen, Moses Lake and Port Townsend is that real progress requires a combination of solutions. You need a skilled workforce, better infrastructure and health care along with incentives like tax credits. As chair of the House Capital Budget Committee, I’ve focused my energy on building that infrastructure, including schools, colleges and parks, along with more funding for rural broadband.
“Senator O’Ban’s $272 per head tax incentive is just a symbolic poke in the eye of Seattle not a real pragmatic solution for rural economic development. We need more pragmatism less symbolism in addressing the challenges of the job creation in rural Washington.”
Tharinger’s Republican challenger, Jim Mc Entire, issued this statement: “I ‘ve looked at Senator O’Ban’s proposed jobs Business and Occupation tax credit and I like it very much. I’m in favor of any and all workable ideas to encourage good-paying jobs in high unemployment counties like the three in the 24th Legislative District. Well done Senator O’Ban! Further, this is the opposite of the family-wage job-killing tax recently enacted by the Seattle City Council and Mayor. What were they thinking?”
Jim Scarantino was the editor and founder of Port Townsend Free Press. He is happy in his new role as just a contributor writing on topics of concern to him. He spent the first 25 years of his professional life as a trial attorney, then launched an online investigative news website that broke several national stories. He is also the author of three crime novels. He resides in Jefferson County. See our "About" page for more information.
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