We had a wonderful thoughtful panel discussion last night with the OG Operators Guild "Navigating New Regulations" last night. Shoutout to our moderator, William Zee and my esteemed co-panelists, K&L Gates Parter John T. Bender and Moss Adams Tax Partner, Casey Moore, CPA. Shoutout to K&L Gates for the amazing venue, forum, and community support.
Continuing with my effort to expose our kids to the work I do, I also brought my eldest son age 9
#theLentil with me to soak it in, work on his networking skills, and learn. (He also does photos and event production on the side).
We are 100 14 days into the new administration both locally here in Washington state and federally.
Some key points:
1. The pause in federal grant funding and the economic uncertainty has affected businesses,
#startups, and investors.
2. Changes in federal tax laws related to R&D expenses have put additional pressure on startups.
3. The additional need WA state taxes significant impacts startups - creates a new B&O tax tier, expands sales tax on digital services, and increases capital gains taxes. The need taxes in WA creates new borders for startups. Higher B&O rates on gross receipts exacerbates bottom lines and cash flows for young companies that need time to grow and scale. The federal tax changes to section 174 - full expensing of R&D also disproportionately hits young startups.
It's a tough environment for many entrepreneurs raising funding. It's even tougher because of the increases in compliance and filing costs, and the nexus rules are just getting broader.
As citizens, we are supportive of the technology and innovation industries in WA state - representing 22% 📊 of the state's economy. Did you know, that for every 1 technology job, 3 others are created 💪🏻. In 2022 alone, the technology sector paid over $4.3 Billion 💵 in taxes to the state of Washington.
We need to continue to support innovation with regulatory clarity and certainty, invest in R&D and commercialization, and create a workforce that can both create the technology and apply the technology.
There's a significant opportunity for
#startups to be a stronger voice with policy makers in the legislative space. Entrepreneurship is in Washington's DNA and a significant reason why our economy is so resilient. Same nationally. In WA, we have world class research institutions, iconic enterprise organizations, a diverse startup landscape and we punch well above our weight when compared to other ecosystems.
Let's continue to better connect and collaborate with our startups. Let's continue to remove regulatory burdens that can stifle innovation and startup growth.
Thanks 🙏🏻 and shoutout 🎉 to the continued leadership of Kelly Fukai, C.M, M.B.A, CEO of the
@WTIA, the largest and most impactful technology industry association on our continent.
#goPNW #Washington #goUSA