Proposed taxes in Olympia will hurt small businesses: A plea from the manufacturing front lines | Opinion

As the owner of a small manufacturing company in Mount Vernon, I’ve spent the last 17 years building Goodwinds Composites into a high-tech, high-impact business. We design and manufacture precision composite components for industries ranging from aerospace to music, from medical devices to industrial equipment. Our parts are on Mars — literally. We built the legs for NASA’s Ingenuity Helicopter.

I’m proud of what we’ve accomplished. We employ 10 people, paying well above minimum wage, offering full benefits, and we’ve invested heavily in our future — most recently by purchasing a second building to expand our production capacity. But as a small business owner, I can tell you this: it’s getting harder and harder to keep up, and tax proposals under consideration in Olympia will put our very existence at risk.

I understand that many of the proposed taxes — like the increase in B&O tax for companies with revenues over $250 million or higher payroll taxes for high earners in companies with revenues above $7 million — aren’t aimed at small businesses like mine. But let’s be honest: none of us operate in isolation. We are part of an interconnected economic ecosystem. When large businesses face higher costs, they look to relocate. If Skagit County’s refineries, for example, decide to leave due to increased B&O, payroll, or property taxes, the impact would be devastating — not just for our local economy, but for the entire state.

Since the pandemic, we’ve grappled with persistent supply chain issues, aggressive foreign competition, and inflationary pressures that impact every part of our business. Like many companies, we’ve raised our prices, but long-term success depends on growth—on reaching new customers and entering new markets. We’ve done the hard work to prepare for that growth, including earning advanced certifications and upgrading our capabilities. But now, just as we’re poised to scale, that new wave of proposed taxes in Washington’s House and Senate budgets threatens to undercut everything we’ve built.

These tax proposals may seem incremental on paper, but for a small manufacturer, they feel like death by a thousand cuts. Take the proposed increase in the gas tax. We ship around 30 packages a day from our Mount Vernon facility. While composite components are light, they’re large — often up to 72 inches long. Five years ago, shipping a 2-pound, 48-inch box from Washington to California cost about $20. Today, that same shipment costs $35 with USPS and $55 with FedEx, thanks largely to fuel surcharges. Add a new gas tax, and those rates will rise again. Every time shipping costs go up, we lose customers. Suddenly, innovative products become too expensive to move, and small businesses like mine bear the brunt.

Meanwhile, construction and renovation costs for our new building are climbing fast. New state building codes, rising material costs, and the possibility of increased property taxes stretch our budget to the limit. That means fewer resources to hire new staff or invest in essential equipment.

All of this is happening against a backdrop of economic uncertainty and new federal regulations. Canadian customers have paused their orders due to looming tariffs. Equipment I sourced internationally — because it isn’t made domestically — has become significantly more expensive than when I placed the orders last year. I’m being forced to revise my revenue forecasts downward and brace for tighter margins.

Washington legislators must consider the ripple effects of their decisions. Raising taxes may seem like a quick way to increase revenue, but it risks undermining the very engine of economic growth — small businesses. We are the ones innovating, hiring, and reinvesting in our communities. We need support, not additional hurdles.

I urge our lawmakers: please, give small businesses a break. Washington’s economic future depends on it.

Amelia Cook is the owner of Goodwinds Composites based in Mount Vernon, Washington.

This story was originally published April 11, 2025 at 10:38 AM.