EOI board member Stan Sorscher takes a an insightful look at a new form of market failure: “group-think”: Markets are powerful and efficient. Markets fail. Engineers study failure. When we design a structure or a system, it is our professional obligation to account for known failure mechanisms, and produce a robust, practical, safe design. We […]
Initiative 1098: Fixing the most regressive tax system in the country
June 9, 2010 By Leave a Comment
The Institute on Taxation and Economic Policy (ITEP) has concluded Washington State has the most regressive tax system in the country. How will Initiative 1098 help restore balance? Background: What’s a regressive tax? A regressive tax is one that takes a larger percentage of the income of low-income people than of high-income people. According to […]
Econ 101: Market failures
June 8, 2010 By 1 Comment
As comfortable as we are with the strengths of market capitalism, we are uneasy and uncertain about its failures: millions of home foreclosures, rising wealth inequality, steady de-industrialization of the US economy, long-term unemployment, threats to the environment, and health care costs that rise without bound. We can collect conventional mechanisms for market failure into […]
Initiative 1098: What counts as a “small business”?
June 7, 2010 By Leave a Comment
Short Answer: I-1098 will eliminate the Business and Occupation (B&O) tax for Washington’s small businesses by increasing the B&O tax credit from $420 to $4,800 per year. According to a Washington Department of Revenue analysis, under I-1098, 81% of Washington businesses would be exempt from the B&O tax (up from 43%); another 12% would see […]
