Although Amazon.com, Starbucks and other large businesses located in Seattle have voiced their firm opposition, the City Council went ahead and approved, 9-0, a massive new employment tax that will raise tens of millions of dollars at the expense of businesses of all sizes. Head taxes are extremely rare in the U.S. and the ones in place are a
fraction of Seattle’s proposal. In Denver, there is a $50-per-year tax
for a full-time employee, while Chicago Mayor Rahm Emanuel scrapped the
Windy City’s tax after calling it a job killer. Seattle's tax will impose a $275 head tax per employee per year.
Both Amazon and Starbucks lambasted the new law, which takes effect January 1, 2019. Their response is that Seattle doesn't have a revenue problem; it has a spending problem. City revenues are already increasing much faster than city population.
You have a company employing 50,000 well-paid workers who in turn contribute to the local economy; they own homes, and buy goods and services. Companies that provide raw materials to your company employ another 50,000 people. The city where you are located almost went bankrupt and out of business more than once due to a decline in sales and employment at Boeing and/or Lockheed. To show its gratitude, the city now is going to charge you $275 a head for each one of those jobs you brought to the table? I don't think so.....
The City Council has made it clear that they don't give a damn what Amazon or Starbucks think or want. Council member Lorena Gonzalez berated Amazon, saying: "their tone in this
message that is clearly hostile toward the city council is not what I
expect from a business who continues to tell us that they want to be a
partner on these issues." Amazon is saying it will reexamine its plans for future growth in the city. It also says it will resume construction on one project, but is reviewing whether or not it will proceed to occupy a second skyscraper.
The Seattle City Council obviously doesn't care. They've made it abundantly clear that businesses must comply or move the hell out of town.
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