If you’ve been a reader here for any length of time, you probably know that the economy is tightly linked to politics. That really comes into play when you look at lists of which states are good at certain things. For example, let’s look at a recent report highlighting economic freedom in the context of government efficiency, regulatory freedom, and energy resiliency.
Here are Five Fast Facts about economic freedom in Washington State:
- 🔍 Where We Landed - Washington State came in at #35 overall in this year’s report. It’s a drop of three spots from last year, but one spot higher than 2022. Is consistency good if you’re below average? 🤔
- ✔️ Category Scores - In the three categories analyzed, the state was #20 in energy resiliency, #38 in government efficiency, and #46 in regulatory freedom.
- 👀 Why, Oh Why - The summary explanation is that the state has a complex and restrictive regulatory environment that makes it hard for businesses to do their thing and grow. There isn’t an income tax (great!), but the combo of a capital gains tax and a gross receipts tax (boo) muddle the tax picture a lot.
- 👍 Bright Spot - The biggest bright spot from the report is the “abundance of affordable, clean, and reliable hydroelectric power” across the state. Take that, Energizer Bunny!
- 📝 Official Comment - One of the six state regional economists was asked for comment on the report, and he said these reports have merit based on the principles of the organization behind them; in this case, the priority was lower taxes and regulatory reform so Washington State looked worse. Other reports prioritize other things, so the state may look better. Okay, fair point.
🔥Bottom line: The phrase, “lies, damn lies, and statistics” is certainly in play when it comes to economics! That’s why it’s always good to think about who is putting out the information you’re reading. We tend to think lower taxes and less regulation is almost always a good thing, but that’s just us.
Speaking of which, one of the items on the ballot in a couple weeks is Initiative 2109, which would repeal the capital gains tax. Get informed so you can vote your preference!
How economically free do you feel?
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