In a recent interview, Leslie Goeres, the founder of Soak and Sage, a renowned day spa, shared her decision to expand her business to Nashville and potentially relocate herself. This move is not just about business growth but also a response to the changing business climate in Washington state.
The Business Climate Shift
Goeres' decision is a direct result of Washington's new 9.9% income tax, which, coupled with other taxes, has made the state less attractive for businesses. She compared the costs of doing business in Seattle and Nashville, and the difference was significant. Nashville offered a 25% reduction in expenses, including lower living and payroll costs, and lower excise taxes. This gap became even more apparent when considering the development opportunities in Nashville compared to the vacancy and high rents in downtown Seattle.
Permitting and Support
Permitting processes also played a crucial role. Washington's permitting process took 7-8 months, while Nashville estimates a much faster 6-8 weeks. This difference is attributed to Tennessee's support for businesses, allowing third-party permit expediters to review and approve plans, a process that Washington lacks. Goeres believes this support is a key reason for Nashville's attractiveness to businesses.
Personal and Political Implications
Goeres' decision to potentially relocate herself and her family to Tennessee highlights the personal impact of these economic shifts. With one son at the University of Washington and another in middle school, her move will affect their lives as well. She challenges the political narrative that portrays businesses as the problem, arguing that businesses support employees and provide living wages. She believes that the current policies, while perhaps intended for larger businesses, are affecting mid-size and smaller businesses like hers.
A Message to Small Business Owners
Goeres has a message for other small business owners: consider the impact of excise taxes and sales taxes, which are among the highest in the country. She believes that these taxes are pushing small businesses out and that policymakers should reconsider their approach if they want to support and retain small businesses.
A Broader Trend
Goeres' story is not an isolated incident. Nearly 1 in 4 Washington employers are considering leaving the state, according to a survey. This trend has been described as a "911 emergency" for Washington's economy. Yet, some politicians remain in denial, insisting that businesses aren't leaving.
Conclusion
The decision to relocate a business and potentially one's life is a significant one. Goeres' story highlights the complex interplay between personal and business decisions, and the broader economic and political trends that shape them. It raises questions about the future of small businesses and the economy in Washington state, and the potential impact on the lives of those who call it home.
