Ed note: Obviously money is needed, but does the city have a comprehensive long term plan to deal with the homeless situation beyond housing. Is there to be more funding for mental health, addiction, social work, health care, family counselling, etc. The mayor has a lot riding on her ability to get things moving. It’s a shame that things have gotten to where they are.
“The tax is a revival from last fall, when a smaller proposal failed to win enough council support.
The bill would raise money through a tax on the number of employees per business. Then in 2021, it would convert to a tax on total payroll. Employers seem to prefer the payroll tax over a tax per employee.
The new tax would apply only to large businesses that earn more than $20 million in revenue — not profit. In a briefing with reporters Friday, city officials estimated only 3 percent of Seattle businesses would be affected.
The $20 million number only applies to revenue earned in Seattle, meaning, say, an Arby’s in SoDo earning less than that won’t have to pay the tax even if its corporation’s earnings was significantly higher.
For that reason, it’s celebrated by proponents as a tax on Amazon, where there is none currently. And in effect, it is: Councilmember Mike O’Brien estimated Amazon would likely pay around $20 million a year in new taxes.
Opponents, mostly from large sectors of the business community, dismiss the proposal as a “tax on jobs.”
In a recent roundtable with business owners, panelists complained that Seattle is making running a business untenable. The tipping point is near, they claimed, and this tax could be the final thing that puts them out of business.
