The Cato Institute, described as a libertarian think tank, annually releases a fiscal policy report ranking all Governors in the United States of America.
According to The Cato Institute, they rank Governor’s from a “limited-government perspective. Governors receiving an A are those who have cut taxes and spending the most, whereas governors receiving an F have raised taxes and spending the most.”
Out of the eight Governors receiving an “F”, it would not surprise any one to hear the triumvirate of Governors from Washington, Oregon, and California accounted for three of those “F’s”.
In fact, Jay Inslee did so poorly with fiscal responsibility over the last year, his score of 18 was 11 points below the next worst Governor; Kate Brown of Oregon who clocked 29 points.
This is not the first time Governor Inslee has received an “F”. As a repeat offender, Inslee has received F’s in 2014, 2016, 2018, 2020, and 2022.
Amongst Jay Inslee’s terrible accomplishments, Cato Institute cited the much discussed and litigated capital gains tax:
And in Washington State, which does not have an individual income tax, Jay Inslee approved the imposition of a 7 percent capital gains tax. But the tax is being litigated as an illegal, nonuniform property tax under the state constitution.
Then Inslee signed into law a surcharge on the state’s gross receipts tax (the “business and occupation” tax) to raise about $360 million a year. Higher rates were imposed for banks and 43 other industries including “software development, engineering, investment‐related services, and independent medical practices. The legislation applies even higher surcharges to some advanced computing businesses.”220 Most states want to attract high‐tech businesses, not scare them away, so imposing these punitive taxes seems bizarre.
As noted in The Cato Institute report, Inslee promised to not raise taxes and broke his promise immediately. According to Cato Institute, “…in his first budget, he proposed more then $1 billion in hikes.”
In a damning synopsis of Governor Inslee’s fiscal policy throughout his tenure as Chief Executive of Washington State, the Cato Institute had tough comments for Inslee and his disdain for the business community:
Then Inslee signed into law a surcharge on the state’s gross receipts tax (the “business and occupation” tax) to raise about $360 million a year. Higher rates were imposed for banks and 43 other industries including “software development, engineering, investment‐related services, and independent medical practices. The legislation applies even higher surcharges to some advanced computing businesses.”220 Most states want to attract high‐tech businesses, not scare them away, so imposing these punitive taxes seems bizarre.
Undoubtedly, Inslee’s disastrous policies have had negative effects on Yakima County. Business is not booming in Yakima and, invariably, you can draw a direct line to Governor Inslee’s fiscal policies as being a driver of business’ shutting down.
We reached out for comment to Governor Inslee’s Deputy Director of Communications, Mike Faulk. Mr. Faulk responded with the following:
“It’s a pretty subjective take from a highly ideological organization. It assumes all revenue and spending are bad, period, regardless of context, public support or results. The methodology even dings governors for changes in cigarette taxes, which have broad public support.
Do you agree with Governor Inslee’s administration? Has Governor Inslee shown fiscal responsibility and improved the economic climate for businesses and citizens?
Thank you David for bringing this to our attention. You ask fair questions and the answers should be brought to the attention of the people of Washington.