“Keep it simple.” This old saying is more than a bumper sticker slogan, it’s a principle that is especially important when it comes to taxes and regulations.

Washington employers have been working for decades to simplify our state’s tax and regulatory policies. Currently, employers must work their way through a maze of complex, overlapping and often contradictory regulations and tax rules that differ from one city to the next, one county to the next.

It’s like playing a game that has 50 different sets of rules.

Wrestling with those costly and cumbersome requirements means employers — particularly small employers — spend time and money on paperwork that could be better spent creating jobs.

That’s why Gov. Gregoire is supporting tax simplification legislation. The governor wants to make it easier for all businesses, especially small businesses, to calculate and pay their Business and Occupation (B&O) taxes.

B&O taxes are assessed on a business’ gross income, regardless of profit. The state imposes a B&O tax, but local jurisdictions do as well. The amount of the local B&O taxes, as well as how they’re calculated, varies from one jurisdiction to the next.

Gregoire describes the situation this way:  “For Washington businesses, especially small business owners who operate with little help, paying state and local B&O taxes is at best complicated and at worse a nightmare.”

Under the governor’s proposal, the state of Washington would be the single collector of all local and state B&O taxes, and the state would rebate to each local jurisdiction their share of the tax — similar to how the state currently handles state and local sales taxes.

The governor also wants to create a central state website where people could apply for or renew state and local business licenses, eliminating the need for similar websites currently operated in more than 50 cities around the state.

“It will save businesses money and aggravation, reduce state and local government red tape and make Washington a friendlier place to set up a business,” notes Gregoire.

But some of the state’s largest cities are pushing back against the governor’s proposal, saying they’ll lose millions if tax simplification becomes law.

Seattle authorities say the city could lose between $23 million and $44 million a year. Tacoma officials estimate their city will lose $4 to $7 million a year. Critics say cities will lose out on millions in tax penalties and interest — money that would now go to the state — and city officials fear that state auditors will not be as aggressive in pursuing tax cheats.

Seattle, Bellevue, Tacoma, Everett and Bellingham say they’re already working on a plan to simplify local tax payments, and lawmakers should wait to see how their project works before passing the governor’s plan.

Gregoire rejects the cities’ criticisms. Noting that the state currently collects and rebates local sales taxes, the governor said, “These horror stories of how they’re losing money? No they’re not. We will give it back. I think it’s the right thing to do for the small businesses of the state of Washington.”

Gregoire points out that 95 percent of Washington employers are small businesses with fewer than 50 workers. “If we can make it easier and cheaper for them to do business,” explained the governor, “they can afford to add more employees.”

“If we ever need a reform that helps business,” says Gregoire, “this is it.”

About the Author
Don Brunell is the president of the Association of Washington Business. Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association, and includes more than 7,800 members representing 650,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.

The headline had it half right: Small Business Disdains Government.

But the real story from the U.S. Chamber of Commerce survey forgot the other half. The more important half: How Government Disdains Small Business.

And we know that because most small businesses cannot do public work. They do not even bid on it because they do not have the credit to start most government jobs.  Seems strange you would need credit to do something that makes money. But you do: Lots of it.

For all the talk about how public officials love small businesses because that is where the new jobs are, these same public officials spend trillions of dollars for jobs that most small contractors cannot do.

Let’s look at a small example: Your local city council wants to hire a painting contractor for a $300,000 job. Amid all the fanfare about the importance of small businesses and how great it will be to keep the dollars in the community, local officials are surprised when local contractors do not bid and the job goes to a larger, out of town rival.

To do the paint job, a contractor needs to pay for paint, vendors, workers’ comp, bonding, and many other expenses long before the first dollar rolls in.

A bond to make sure the contractor will complete the job also requires credit, and that often requires a big chunk of cash as collateral.

All of a sudden, in order to bid on a $300,000 job you need that much and more in credit.

And ever since the world changed in 2008, most do not have it.

Not if they look for it at the bank.

No matter how much your banker wants to lend you money, chances are he cannot. Here’s why: Even if the mythical painting contractor has a 30-year relationship with his banker, if the contractor came out of the financial tsunami with a few dings on his credit, the loan is automatically marked with a dark star.

When that happens, the banker has to treat the loan as if it were already bad. That means setting money aside that he would normally lend to someone with better credit.

For every one dollar they set aside for this contractor, that means they will be able to lend $4 less to another.

Small business owners figured this out a long time ago: If they want to get their first government job, they have to find the credit somewhere other than a bank.

Some small business owners are finding ways to get credit from financial companies that look past credit scores and look at their ability to finish the job on time and under budget.

But most public officials are not aware of these new ways of keeping small business owners in business. Not yet anyway.

The President recently said that the stimulus did not work as well as he wanted because some of the “shovel ready” jobs were not as shovel ready as he thought.

Now you know what he was talking about.

The streamlined application process in MRSC Rosters, at www.mrscrosters.org, saves businesses time, allows them to directly learn about job opportunities, and supports public agencies in more efficiently completing quality projects.

257 Washington cities, counties, and special purpose districts use MRSC Rosters, including 57 King County public agencies: Auburn, Burien, Des Moines, Enumclaw, Federal Way, Maple Valley, North Bend, SeaTac, Tukwila, 10 fire districts, 6 school districts, and 23 other agencies. A full list of participating public agencies can be found at http://mrscrosters.org/PartAgencies.aspx.

MRSC Rosters is a program of Municipal Research and Services Center of Washington (MRSC), a non-profit organization that has been serving Washington local governments for more than 75 years. As recognized local government experts, MRSC has developed a statute-based roster service that maintains public agency individual small public works rosters (RCW 39.04.155) and consultant rosters (Chapter 39.80) within a shared database and assists businesses with the roster application process.

Businesses apply at anytime by completing the application within www.mrscrosters.org. It is free to register on one or many of the participating public agency rosters within the database using the default Basic Membership. The listing gives businesses the opportunity to be notified about public works construction, repair, or maintenance projects under $300,000.00 or small to medium sized architecture, engineering, surveying, or other consulting professional services projects.

Public agencies contract with MRSC for a nominal annual membership fee from $100/yr for public agencies with total capital expenditures under $5 million. More information can be found at http://www.mrscrosters.org/agency.aspx. Agencies follow the same contracting procedures they would if they maintained their own rosters and MRSC has no involvement in business selection.

Every January, Americans look ahead with the desire to start the New Year with fresh ideas and hopes to improve.  The U. S. Small Business Administration is doing the same thing – regularly meeting with lenders and resources partners to get feedback on ways to improve our loan programs and services.  And, this past year, the SBA engaged over 150 community lenders in all 50 states to provide comments on ways that the SBA’s CAPLines Program could work more effectively for both SBA lenders and small businesses, as this program has been underutilized. 

SBA’s CAPLines Program helps small businesses meet their short-term and cyclical working capital needs.  The SBA provides up to an 85 percent guarantee. There are four loan programs under CAPLines:  Seasonal Line of Credit Program, Contract Loan Program, Builders Line Program and Working Capital Line.

These are the key benefits of the program:

• The SBA no longer requires small business owners without building or equipment to use their personal assets as collateral to secure working capital.
• Small businesses can pledge accounts receivable, inventory, contracts, and purchase orders in order to secure an SBA revolving line of credit.  For example: when fulfilling a purchase order request, the same order can be used as collateral to obtain an SBA-guaranteed line of credit to hire more workers and buy more materials.
• Small business subcontractors can obtain an SBA-guaranteed line of credit to finance their work on a contract with a federal prime contractor.
• Small businesses working on a contract that requires surety bonding can obtain an SBA-guaranteed line of credit.

Overall, the improved CAPLines Program provides business owners with the working capital they need to take advantage of new opportunities, as they continue to grow their business and create jobs in the new year.

Small businesses that use CAPLines will benefit from the increased SBA 7(a) loan limit of $5 million, effective as a result of the Small Business Jobs Act.  For those small businesses looking to vie for bigger contracts, this will help them financially prepare to compete and win.

Whether you are a startup, currently in business, or a business that is experiencing difficulties, SBA has programs to help you.

As you take the time to evaluate your business needs and set goals for the New Year, remember to reach out to SBA resource partners such as SCORE, Small Business Development Centers and Women’s Business Centers.  They provide counseling and can assist you with developing or updating a business plan, marketing plan, or a loan package to take to a lender.  To locate resources in the state of Washington or to contact your local SBA office visit:  www.sba.gov/localresources.

Three awards will be given, one for companies that have participated in the SBIR/STTR programs, one for individuals who advocate on behalf of the programs, and a third “Hall of Fame” award recognizing companies that have an extended period of extraordinary success of research, innovation, and product commercialization within the SBIR or STTR program.

The Tibbetts Awards are named after Roland Tibbetts, who was instrumental in developing SBIR, a highly competitive program to ensure small businesses get a chance to compete for federal research and development funding, along with the opportunities it provides to profit from commercialization of the technologies they develop.

The SBIR and STTR programs currently account for more than $2.5 billion per year in federal R&D funds and are coordinated by the SBA in cooperation with 11 other federal agencies with large external research and development budgets.

The awards are presented to companies and individuals that are beacons of promise and models of excellence in high technology.  Typical of past award winners are a Maine company that created a self-propelled and eco-friendly “AquaPod” for sustainable aqua-culture. A previous Hall of Fame award winner that won numerous SBIR grants – a major west coast chip manufacturer – started with a staff of 35 and has expanded to a global work force of 17,500.

Selections for Tibbetts Awards are based on several factors, including the economic impact of the technological innovation, overall business achievement and demonstration of effective collaborations.

Nominations for these awards opened December 15, 2011 and will close 5 PM EST on January 31, 2012.  Awards will be presented in Washington, DC, in April` 2012. To submit a nomination, please visit tibbetts.challenge.gov  (Tibbetts Awards – companies and individuals) and sbirhof.challenge.gov  (Hall of Fame Awards).

Now we elect Presidents based on what candidates say. Not what they have done.

We confuse talking with doing. No wonder so many things are undone. Or done so poorly.  Need more energy? Make a speech, but do not let anyone build new pipelines. Talk about natural gas, just don’t allow people to drill for it. Cry crocodile tears about dependence on foreign oil, but make sure we do not look for it here.

Now it is getting even worse: Instead of ignoring the doers, we are actively scorning them. People like a Donald Trump, who to his credit, refused to sit by while Do-Nothing Talkers with TV shows say he does not have the credibility to host a presidential debate.

But, somehow, Anderson Cooper does. So do personalities from the media wing of the socialist party of America, MSNBC. But Trump has nothing to say.

As if Trump should apologize for being accomplished.

Surely we have no greater example of this today than the reception Mitt
Romney is getting in some quarters in his bid for the Republican
nomination.

If there is anything that joins that Republican candidates for President, it is that they agree Obama is the worst president in our lifetimes and he most go.

But they are separated by something even more important: Some are talkers.
One is a doer.

Talking and passing laws and running governments can be important, especially if you are passing and not passing the right ones. But we should never confuse people who
talk about creating jobs, creating wealth, and creating prosperity, with
those who actually do it.

Like Romney.

Fresh out of business school, Romney actually went into business. Showing
real companies with real payrolls and products how to do better. How to
stay in business. Including the company that hired him, Bain Capital.

His boss was so impressed, he convinced Romney that instead of just
advising companies in trouble, Romney should buy them, fix them, and sell
them. Over the next ten years, that is what he did.

Romney bought and sold or invested in Experian credit reporting agency, Domino’s Pizza, Staples Superstore, AMC Entertainment, Brookstone, Burger King, Burlington Coat Factory, DoubleClick, Guitar Center, Hospital Corporation of America (HCA), Sealy, The Sports Authority, Toys R Us, Unisource, Warner Music Group, The Weather Channel and more than more than a hundred others.

He started with $37 million. Romney left Bain in 1998. Today Bain Capital controls $65 billion in assets.

If you had invested $1000 in Bain Capital at the beginning of Romney’s fourteen-year run, that would have been worth more than $39 million by the time he was through.

And in his spare time, he saved the 2002 Winter Olympics at Salt Lake City.

This guy has been doing nothing but turning around dismal enterprises that every one had forsaken. And making money at it.

Real world translation: He did a great job. Wiggle your fingers at that, Occupy Wall Street.

Now there is one more job to do. The biggest turnaround of all: The greatest country in the world.

And Romney is really the only one who has shown us he knows how to do it. Because he has done it before.

We used to honor people of achievement. Now we do not. So we get less achievement. More talking. Maybe that is the biggest turnaround challenge this turnaround expert really faces.

Bill Gunderson is a financial advisor with Gunderson Capital Management in Oceanside, California

Shoppers have many outlets to choose from when looking to purchase products, one of which is to purchase online.  Most websites can undersell your local retail stores because they do not have to charge you sales tax if your residence is not co-located with their store or warehouse.  A state can only charge taxes to a customer that resides in that state.  Could this be a global form of tax evasion, could states not benefit from its taxation rights due to a technicality?  There are many organizations out there right now looking into solving this dilemma and producing an “internet sales tax.”  It is very likely that if a universal internet tax is accepted into law, it will result in more of a burden to online retailers and reduce growth of internet use and e-commerce.  Moreover, if this tax is implemented, how will this change the future of online shopping?  Below I will review some of the facts on shopping online and the impacts of internet taxation.

The first question most consumers may ask is what is the law on internet taxation?  The Supreme Court conducted a test to determine if a state tax excessively burdens interstate commerce.  The first rule is that a consumer must have nexus (a tie or link to) that state before it can collect taxes from that consumer.  “In Quill Corp. v. North Dakota, the Supreme Court explained that a business had to be physically present in a state before that state could require the business to collect use tax on its behalf” (Atkins, 2005, p. 1).  In the Quill Corp case, North Dakota sent a notice that the corporation owed taxes for purchases that North Dakota residents had made even though Quill Corp did not have any physical locations or employees in North Dakota.  The Supreme Court sided with Quill Corp stating that the taxpayer must have physical presence in the state in order for them to collect a tax on purchases.

Another fact on internet taxation is The 1998 Internet Tax Freedom Act of 2007, signed by President Bill Clinton.  What this law did was to make an effort to preserve commercial, educational, and informational potential of the internet.   This law prohibits federal, state and local governments from collecting internet only taxes such as the Quill Corp case.  The law does not exempt sales taxes from being collected on purchases made online, but rather that online purchases are still taxed as the same as local purchases and mail order purchases.  Congress has extended the law three times, was signed by President George Bush in 2007 and is currently good until November 2014.  “The online tax moratorium doesn’t apply to regular sales tax, however. A 1992 U.S. Supreme Court decision held that companies with no actual physical presences in a particular state — a store at the local mall, or a regional distribution center for example – were not required to charge sales tax for items they ship to that state” (Fuller, 2011, p. 1).  What this meant was that if you buy something online and the retailer doesn’t charge sales tax, you the consumer are supposed to send the tax to the appropriate authorities.

The last fact is the movement to simplify tax collection of online companies that do not have nexus presence in a state.  The movement, also called the Streamlined Sales and Use Tax Agreement (SST), is trying to reduce the administrative costs of collecting taxes.  “Even though the SST movement began with the worthy goal of simplification, over the years it has been overtaken by revenue-hungry tax administrators, politicians and interest groups — all too excited to continue their never-ending quest for more state tax revenue” (Williams & Stephenson, 2011, p. 2).  The SST has been struggled to overturn the Quill Corp decision and has been generally unsuccessful in swaying state and Congress to approve new legislation.

In conclusion, more and more consumers are turning to online shopping not just for the ease of finding hard to find products and locating a great deal, but in order to avoid being charged taxes because of the nexus rule.  This has been legally acceptable from looking at the Quill Corp. v. North Dakota, the 1998 Internet Tax Freedom Act of 2007.  Until the greedy politicians have a chance to change the laws governing internet use and business, buying online to avoid paying state taxes is not a form of tax evasion.  The opposition to this is the movement of the SST to enable states to charge taxes to consumers that are not nexus located to the retailer.  Many opposed to internet taxation are convinced that an increase in tax and fees will result in more expenses for the consumer and will ultimately restrict the growth of internet use and e-commerce (Griffin, Smith, and Watson, 2009).  Most Americans would agree that every state has a right to collect a form of sales tax that will help benefit their state, but in the end if an internet tax rate such as the SST is trying to pursue would primarily hurt the small business that are trying to conduct sales online.

With a new year on the horizon, it’s a perfect time to dream about the future and set new goals and resolutions.  If your plans include starting a new business, the best place to begin is with the U. S. Small Business Administration (SBA).

The SBA has offices across our region; and lenders, counselors and resource partners who work in right here in your community.  With their help, we have been knocking down obstacles for entrepreneurs and small business owners for nearly sixty years.

In fact, for the fiscal year that just ended, we helped provide 632 loans to small businesses in the state of Washington.  Nationwide, SBA had our biggest year ever.

How can SBA help you ring in the New Year?

Have you jotted down a few ideas on paper and need someone who can help you formulate a business plan? The SBA or one of our resource partners is a great place to start.  You can find local help by going to www.sba.gov/direct and typing in your zip code.

Or, check out www.SCORE.org, a volunteer organization, with more than 350 chapters and more than 10,000 mentors, many of whom have “been there and done that” when it comes to starting a business.

The best part is that SCORE mentors can often help you for free.

Are you already a small business owner?

Many small business owners have come to SBA over the past year, looking for ways to reinvent their business and grow in the face of tough economic times.  Whether it’s getting an SBA loan, winning your first federal contract, or learning the ins-and-outs of exporting, the SBA and our resource partners can help get you the information you need.

Why is all of this so important?

Economists agree that small businesses are a big part of the solution to getting our economy moving again and creating jobs that we lost in the recession.

So, if you are thinking about starting or growing a business in 2012, let SBA help you.  There’s no time like the present to have that first conversation with the SBA or one of our resource partners in Bellevue.  Then, celebrate the New Year!

Upon Ecology’s approval, the locally tailored shoreline program will help minimize environmental damage to shoreline areas, reserve appropriate areas for water-oriented uses, and protect the public’s right to public lands and waters.

The shoreline master program proposed by the city will guide construction and development along the city’s two miles of Tolt and Snoqualmie river shoreline. It combines local plans for future development and preservation with new development ordinances and related permitting requirements.

Under Washington’s 1972 voter-approved Shoreline Management Act, Carnation’s proposed shoreline program needs review and approval from Ecology before it can take effect. About 220 cities and counties statewide are in the process or soon will be updating their master programs during the next few years.

Ecology will accept public comment on Carnation’s proposed program through 5 p.m., Jan. 6, 2012. Address comments and questions to David Pater, Shorelands and Environmental Assistance Program, Department of Ecology, 3190 160th Ave. S.E., Bellevue, Wash. 98007 or email david.pater@ecy.wa.gov. His number is 425-649-4253.

Carnation’s proposed shoreline program and related documents can be reviewed at:

• Department of Ecology Northwest Regional Office, 3190 160th Ave. SE, Bellevue, by appointment: 425-649-7190.

• Online at www.ecy.wa.gov/programs/sea/shorelines/smp/mycomments/carnation.html

• City of Carnation, 4621 Tolt Ave., Carnation. Phone: 425-333-4192.

• City of Carnation website: www.carnationwa.gov/index.asp?Type=B_BASIC&SEC={CBB9FD65-2A80-4F47-B070-F8D51F07AB46}&DE={4788B708-D2B3-417F-B148-64BF0E65765D}

Ecology may approve the proposed shoreline master program as written, reject it or direct Carnation to modify specific parts. Once approved by Ecology, Carnation’s shoreline program will become part of the state’s overall shoreline master program.

Carnation conducted a two-year, three-month process to develop its shoreline program, involving the collaborative efforts of local interests, including citizens, shoreline property owners and local agencies. The update began with a thorough inventory of existing land-use patterns and environmental conditions, which was used to help identify different shoreline environments and develop the shoreline program’s policies and regulations.

Carnation’s shoreline master program update:

• Incorporates the city’s critical areas regulations, which include fish and wildlife habitat conservation areas and frequently flooded areas.

• Recognizes the preservation of existing intact riverside vegetation.

• Establishes 100-115 foot riverside buffers on the Tolt and Snoqualmie Rivers.

• Sets shoreline stabilization standards that promote more natural, non-structural options.

• Provides a shoreline use and modifications matrix that clearly defines permitted activities.

• Includes a restoration plan showing where and how voluntary improvements in water and upland areas can enhance the river shoreline environment.

• Helps support the broader initiative to protect and restore Puget Sound.

All of Washington’s cities and counties with regulated shorelines are required to update their programs by December 2014. They are following regulations adopted by Ecology in 2003. The regulations resulted from a negotiated settlement between 58 different parties, including business interests, ports, environmental groups, shoreline user groups, cities and counties, Ecology, and the cour

For more information:

Carnation shoreline master program:

Ecology:  http://www.ecy.wa.gov/programs/sea/shorelines/smp/mycomments/carnation.html

Carnation: www.carnationwa.gov/index.asp?Type=B_BASIC&SEC={CBB9FD65-2A80-4F47-B070-F8D51F07AB46}&DE={4788B708-D2B3-417F-B148-64BF0E65765D}

More about shoreline master programs: www.ecy.wa.gov/programs/sea/shorelines/smp/index.html

Our Living Shorelines web portal:  www.ecy.wa.gov/livingshorelines/index.html

Ecology’s website: http://www.ecy.wa.gov

Ecology’s social media: http://www.ecy.wa.gov/about/newmedia.html

Enterprise Washington announced today it is partnering with The 2012 Project to inspire women with experience in the private sector to run for the Washington State Legislature.

“We are extremely excited to partner with The 2012 Project to help professional women who are interested in running for public office succeed,” said Erin McCallum, president of Enterprise Washington. “Only 33 percent of the members of the Washington State Legislature have private-sector experience. It is essential to recruit businesswomen who know what it takes for our state’s private industries to remain competitive, and who can take steps to

grow private-sector employment in Washington state.”

The 2012 Project is a national, nonpartisan campaign sponsored by the Center for American Women and Politics to identify and engage accomplished women ages 45 and up from industries that are currently underrepresented in state legislatures and in Congress.

“I’m thrilled to see Enterprise Washington assisting with this effort,” said Cathy Allen, one of Washington state’s top political strategists. “There is so much talent out there in our state and if business leaders encourage their female colleagues to run, they have a great chance of winning.”

Enterprise Washington is actively recruiting candidates in over 25 legislative districts in Washington state, and is working closely with The 2012 Project and other political partners to encourage and engage potential candidates. Between now and the 2012 election, Enterprise Washington will connect professional women who are interested in taking the next steps toward a potential candidacy with training and leadership programs, fundraising networks and political support organizations that can help them succeed.

“We are also working in collaboration with several other entities across our state who have a passion to see women elected, including the National Women’s Political Caucus, Women Impacting Public Policy and nearly 100 female professionals,” added McCallum.

Nationally, The 2012 Project aims to take advantage of new and open seats that will be created as a result of redistricting. The 2010 elections saw the first significant decline in women state legislators in decades and the first drop in the number of women in Congress in more than three decades. Women now only comprise 17 percent of Congress and 23 percent of state legislatures. This underrepresentation of women in public office looks unfair in a nation whose population is more than half female.

Any professional women considering seeking public office in Washington state should contact Enterprise Washington President Erin McCallum at (425) 313-0074 or erin@enterprisewashington.org.

About Enterprise Washington

The nonprofit, nonpartisan organization Enterprise Washington helps companies and employees better understand how elected officials establish public policy, and how to become more involved in the political process. Growing Roots for Our Workforce, GROW, is Enterprise Washington’s grassroots program dedicated to voter education and supporting jobs and the economy. For more information on Enterprise Washington, visit www.enterprisewashington.org.

About CAWP

The Center for American Women and Politics, a unit of the Eagleton Institute of Politics at Rutgers, The State University of New Jersey, is a university-based research, education and public service center. Its mission is to promote greater knowledge and understanding about women’s changing relationship to politics and government and to enhance women’s influence and leadership in public life. CAWP is a leading authority in its field and a respected bridge between the academic and political worlds. For more information on The 2012 Project, visit www.the2012project.us.

About NWPC-Washington

The NWPC-WA is a multi-partisan organization working to see more women elected and appointed to office in Washington State, and to involve more women in the political process.  For more information on NWPC-WA, visit www.nwpcwa.org.