The founder of Soak and Sage, a renowned day spa in Renton, Washington, is making a bold move that could have significant implications for the state's economy and small businesses. Leslie Goeres, who built the spa from scratch and was named the best day spa in the Pacific Northwest by the Seattle Times, is expanding her business to Nashville, Tennessee. This decision comes as a response to Washington's new 9.9% income tax, which, coupled with other taxes, has created a less favorable business climate. Goeres' story highlights the challenges faced by small businesses in Washington and the potential consequences of high taxes and bureaucratic hurdles.
A Costly Decision
Goeres' decision to expand to Nashville is primarily driven by cost considerations. Nashville offers a 25% lower cost of living, lower payroll and overhead expenses, and lower excise taxes compared to Seattle. This significant financial advantage is a crucial factor in her business strategy. Additionally, the permitting process in Nashville is remarkably faster, taking only six to eight weeks, whereas it takes seven to eight months in Washington. This efficiency is made possible by the city's use of third-party permit expediters, a service that is not available in Washington.
Personal and Professional Impact
The impact of this move goes beyond just business. Goeres, a mother of two, is also considering relocating her family to Tennessee. Her children's education and quality of life will be affected by this decision. This personal aspect adds a layer of complexity to the story, highlighting the human cost of economic policies.
A Call to Action
Goeres' decision has sparked a conversation about the challenges faced by small businesses in Washington. She challenges the political framing that casts businesses as the problem, emphasizing that they support people and provide living wages. She also urges other small business owners to consider the impact of taxes and regulations on their operations, especially the high sales tax rate and B&O taxes. Her message is clear: small businesses are being taxed to death, and the state's policies need to be re-evaluated to support them.
The Broader Implications
The potential departure of Soak and Sage from Washington is not an isolated incident. According to a survey by the Association of Washington Business, nearly 25% of employers are considering leaving the state. This trend is a serious concern for Washington's economy, as highlighted by AWB president Kris Johnson, who called it a "911 emergency." The state's business climate, including high taxes and bureaucratic inefficiencies, is driving businesses away, which could have long-term consequences for the region's economic health.
Conclusion
Leslie Goeres' decision to expand her business to Nashville is a powerful example of how economic policies can impact individual businesses and families. It also underscores the need for a re-evaluation of tax and regulatory frameworks to support small businesses and ensure a thriving economy. As Washington grapples with this challenge, the future of its small business sector hangs in the balance.
