Washington: businesses leaving Democratic state due to rising costs, rampant insecurity and new 'millionaires' tax'

After nearly half a century operating in the state, a family-owned camshaft manufacturer has decided to move out of Washington, becoming the latest example of the growing frustration of local entrepreneurs.

Jon Bodwell, owner of Delta Camshaft, founded by his family in 1977, announced that the company will leave the state. In an interview with Fox News, Bodwell explained that an increasingly hostile political climate toward business made it untenable to continue operating in Washington, a state controlled by Democrats.

"A majority of it is the constant battle with the city over the graffiti and the crime stuff here, the constant massive tax increase, everything is increasing," he added.

Cost hikes, crime and new tax: businesses flee

Delta Camshaft, which employs dozens of workers and has operated for 48 years in the region, will not close its operations, but will relocate to another state where conditions are more favorable for doing business.

"The cost of power, the cost of insurance, everything is increasing by large increments. It's not like one or two percent, it's like, my insurance went up 20%," Bodwell explained. "My power bill is going up. The claim is supposed to be going up another 13%. But just last month, it almost doubled."

"Because crime is running rampant, my insurance policy on the building is skyrocketed," he added.

In March, the state legislature, controlled by the Democratic Party, passed what they term the "millionaires' tax," a new income levy that Governor Bob Ferguson signed into law on March 30. The tax levies income above $1 million a year, with a rate of 9.9% on the portion exceeding that threshold.

Nearly a quarter of businesses are looking to relocate out of state

The Association of Washington Business (AWB) recently revealed that nearly one in four business owners in the state is considering moving out of Washington, the highest figure recorded in years.

The poll, conducted April 8-22 with 407 business owners and operators, reveals that 24% of respondents are considering moving their business, up significantly from 17% in the previous quarter and nearly triple the number recorded 16 months ago.

Taxes appear as the top concern: 72% of respondents see them as one of the main challenges for their businesses. They are followed by health care costs (65%), government regulations (58%) and fuel prices (53%).

"It’s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won’t really leave, but that would be a mistake," warned Kris Johnson, president of the AWB. "Business owners are moving taxable assets out of Washington, they aren’t planning to hire as many workers, they’re growing more worried about a recession, and they’re far more likely to expand their businesses in another state than they are to grow here in Washington."

The report also shows strong economic pessimism: only 7% believe the state's economy is strong or very strong, and 46% expect a recession in the next 12 months.