The level of taxation that a state imposes has an economic impact. Also important, however, is the nature and scope of the tax. The Washington Policy Center's Center for Small Business has started a three-part look at the state's Business and Occupation tax.

The first report (PDF) describes the qualities of a responsible tax system and then judges the tax by those qualities. It says that the tax is too complex, and recommends changing by keeping in ind the principles of transparency, reliability, and equity.