The Tri-City Regional Chamber of Commerce takes a position on two initiatives

The Local Government Affairs Committee recently voted to take positions on two of the upcoming Washington State Initiatives. On August 21, 2024, the Chamber Board affirmed the committee recommendations.

Based on the recommendations of the Association of Washington Business (AWB), we reviewed Initiative 2109, which proposes to repeal the Capital Gains Tax. The AWB’s position is to support this initiative. Both the AWB and most businesses opposed the Capital Gains Tax when it was initially proposed, as it acts as a disincentive for businesses to establish themselves in Washington State. Additionally, the Capital Gains Tax is seen as a precursor to a larger income tax, which Washington voters have rejected multiple times.

Supporting Initiative 2109 aligns with our Guiding Principles of “Tax and Spending” and “Regulatory Reform.” The principle of Tax and Spending advocates for “a competitive and balanced tax environment that stimulates growth by encouraging the private sector.” Regulatory Reform states that “government policies and regulations should incentivize innovation and entrepreneurship.” The Capital Gains Tax contradicts both principles. Therefore, we voted to support Initiative 2109.
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Similarly, the LGAC reviewed Initiative 2124, which proposes the ability to opt out of the Long-Term Services Insurance Program (WA Cares). Neither the AWB nor the business community supported the WA Cares program when it was first introduced due to its numerous uncertainties and limitations. Issues of eligibility and solvency have been prominent concerns from the beginning.
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Supporting Initiative 2124 is consistent with our Guiding Principles of “Regulatory Reform” and “Healthcare.” The implementation of WA Cares contradicts our Regulatory Reform principle by creating additional reporting and tracking requirements that negatively impact businesses. It also violates our Healthcare principle by being a “burdensome employer directive.” Currently, employees bear the entire cost of the WA Cares program, but as the program grows and solvency issues arise, it is foreseeable that employers may eventually be required to cover the shortfall. Therefore, we voted to support Initiative 2124.