Washington State Labor and Industries (L&I) has released its 2022 price list with an average increase of 3.1% on businesses in Washington.
The increase is underway despite the state receiving record revenues, bringing in an additional $ 2.6 billion in taxes during the pandemic, and businesses struggling to keep their doors open amid imposed closures by the government.
The rate increases range from -18% (a tax cut) to an increase of 29%. Notably, many low-risk service industries are seeing double-digit increases, including student volunteers and IT staff.
Kris Johnson, president of the Association of Washington Business, issued the following statement regarding the state Department of Labor and Industry’s proposed worker’s compensation tax rates for 2022:
“The proposed increase in workers’ compensation insurance rates of 3.1% on average is disheartening news for employers and employees struggling to survive during the pandemic. While this could be called a small increase, we cannot forget that it remains an extremely difficult time for many small businesses. “
The state should not increase taxes on small businesses during a pandemic, especially since state tax revenues are at record levels. Since 2008, the state has experienced record revenue growth of 39.4% and is the highest in the county.
State officials should consider tax cuts, not tax increases during these fragile economic times.