Reps. Young and Walsh issue joint plan to jump-start Washington’s economy

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CONTACT: Kelley Payne, Public Information Officer for Reps. Jim Walsh and Andrew Barkis | 360-786-7761

Reps. Young and Walsh issue joint plan to jump-start Washington’s economy

Washington State Reps. Jesse YoungR-Gig Harbor, and Jim WalshR-Aberdeen, have released their plan to help kick start Washington's economy when the state does finally reopen for business. Young and Walsh are calling their plan the “BOISE” solution: a short-term, statewide dual moratorium on B&O taxes and Impact Statements on Everything—including permits and fees.

“As we approach May, the broader dialog continues to center on when to reopen the economy,” said Young. “I believe it is critical to take bold action now to get it flourishing again.”

The BOISE plan is a two-pronged approach that seeks to allow shuttered businesses the opportunity to earn back much-needed lost revenue and increase their short-term margins while streamlining their ability to get back up-to-speed by removing the need to wait for governmental reviews and permitting to begin their work.

“This plan will kick-start our local economic engine across all sectors of our state and impact working families and businesses immediately, without adding more government bureaucracy,” said Walsh.

Because the state is already losing revenue because of the shutdown, the major tenets of the plan include:

  1. Revenue Leveraging
    • The B&O tax accounts for roughly 18% of the state's revenue while sales and use taxes account for about 50%. The BOISE plan would apply a short-term leverage on the 18% to help the 50% rebound and excel at a much faster rate.
    • The net result is greater economic activity AND state revenue growth.
  2. Capital Liquidity
    • Due to the limits on governmental lending and its inability to cover all small business capital needs, the BOISE plan would pause B&O taxes to increase small business profit margins with the secondary goal of improving capital liquidity due to:
      • Lowering the risk of restart-up failure
      • Increasing the ability for the banking industry to lend additional capital.
    • The plan would also temporarily suspend governmental impact fees, which would improve profit by reducing regulatory costs due to higher-spend, business-restart-activities.
  3. Streamlining economic activity
    • BOISE also seeks to address the concern of businesses that are re-opened but forced to wait on regulatory permission before starting up. With savings depleted, local small businesses cannot afford to wait on permitting once they do reopen. The BOISE plan would suspend fees, permitting, and impact statement assessments to address this concern.
    • In situations involving long-term public safety issues, permitting and reviews could be done after the fact, but in either case, the fees associated with all would be eliminated until the economy is back up and running.

“This plan will position our state economy well from a competitive standpoint, especially from foreign and out-of-state competition, increase capital liquidity, and ultimately help regenerate our overall state revenue,” added Rep. Young.

“We're confident we can overcome COVID-19 and its damaging economic effects, and we can offer real help to everyone who needs it,” noted Rep. Walsh. “As your state lawmakers, we will continue to do everything in our power to find the right solutions to get Washington back on its feet and Washingtonians safely back to work. Let's start by unleashing our local economy with BOISE!”

A BOISE bill is currently being prepped and finalized should there be a special session of the Legislature.

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Washington State House Republican Communications
houserepublicans.wa.gov