Rep. Ed Orcutt Discusses Washington State Tax Breaks at Hoops Tax Forum
By Sue McMurray
When Rep. Ed Orcutt gave the fall 2024 Hoops Tax Forum keynote, his opening statement perfectly captured the purpose of the event and the mission of the Hoops Tax Institute at the Carson College of Business.
“I’m not here to tell you what to think on tax policy but to give you background and insights as you develop your own thoughts on a particular tax policy,” he says.
Featuring diverse, professional insights of top tax experts and legislative leaders is a hallmark of the Hoops Tax Institute.
Institute Director Jeff Gramlich says the tax forum helps students, faculty, and the community learn about taxation, government regulation, and the value of voting. Attending the forum is great avenue for students to develop critical thinking and prepare for the workforce, he says.
Orcutt shares professional and personal insights on Washington’s tax system
In the Washington State House of Representatives, Orcutt represents the 20th District and is the ranking Republican on the House Finance Committee. He’s known to champion tax incentives to spur business in Washington state communities.
Orcutt has been a forestry consultant since 1990 and owns a forestry consulting company. He serves on the House Agriculture and Natural Resources Committee and relies on his forestry background to guide his decisions on matters of forest policy. He also serves on the House Transportation Committee and advocates for local transportation and effective use of state gas tax and vehicle registration revenues.
At the forum, Orcutt detailed how tax policy is made through the House and the Senate and explained his views on tax breaks.
“Tax breaks help us be more competitive with other states, reduce higher operational costs, prevent job loss in struggling industry, and equalize the tax burden between high-profit and low-profit businesses,” Orcutt says.
He shared two examples illustrating the importance of incentives when it comes to bringing in jobs and attracting companies to locate within a state.
In one example, economic development entities indicated 2,000 or more jobs had been created in Cowlitz County as a direct result of a manufacturing and sales tax exemption. In another case, five companies looking to establish a new data center in Washington ultimately decided it was too risky because they were unsure if a data center tax exemption about to expire would be renewed. The legislature did extend it the next year, but all of the companies had already decided to build in other states.
“Tax policy matters where people locate their businesses,” Orcutt says. “It also matters where they expand their businesses. Some say removing a tax break won’t shut a business down. But when there is no incentive or a question of whether there will be one, employers may locate in another state where there is certainty, or when it comes time for businesses to expand, they may look elsewhere.”
Orcutt also gave examples of the 786 tax breaks in Washington state, some of which apply to businesses (278), agriculture (63), individuals (93), nonprofits (95), interstate commerce (22), and government (82). He says tax policy has been used to discourage certain activities, such as smoking, drinking, and radioactive waste disposal. He also says many differences across the business/occupation and sales tax categories and property tax exemptions for senior citizens have strong bipartisan support.
“Protecting taxpayers and creating jobs is important to me,” Orcutt says. “I back that up by supporting legislation to encourage the growth of all businesses and to help preserve existing jobs in our communities.”
Semiannual forum features diverse perspectives of tax leaders
As a Republican representative, Orcutt’s presentation rounded out Gramlich’s agenda to feature bipartisan views at this year’s dual tax forums. Orcutt’s stance that state lawmakers should resist efforts to raise taxes on individuals, families, or employers contrasted with that of Democrat Noel Frame, a state senator and former chair of the House Finance Committee, who gave the keynote at the 2024 spring tax forum.
While Orcutt maintains that the state’s tax system produces enough revenue to pay for state priorities, Frame advocates for creating tax credits for Washington’s working poor and a property tax on extreme wealth derived from the ownership of stocks, bonds, and other financial, intangible property.
“Inviting bipartisan legislators to share their views on tax issues and giving students and the community an opportunity to ask questions in a professional setting is one way the Tax Institute serves society,” Gramlich says.
In addition to the semiannual Hoops Tax Forum, Gramlich hosts the annual Washington State Tax Forum in August, bringing together state and local tax professionals and state tax administrators to WSU to discuss approaches to pressing tax issues in Washington state.