After immense public backlash from businesses, consumers, and anyone who has skimmed through an economics textbook, Seattle politicians are on the cusp of repealing last month’s regressive tax on jobs.
In May, the Seattle City Council voted 9-0 to institute a tax of $275 per employee per year on businesses that grossed $20 million annually. The city projected it would raise $47 million to help the homeless and construct low-income housing.
So many people were irked by the tax that a petition gained enough signatures to qualify for a referendum on the November ballot. It also raised $200,000 and garnered a lot of volunteers.
Seeing the writing on the wall come the 2019 election, most Seattle members of council agreed: it’s time to repeal the bill.
Mayor Jenny Durkan, alongside City Council President Bruce Harrell and a few others, issued a statement:
“We heard you. This week, the City Council is moving forward with the consideration of legislation to repeal the current tax on large businesses to address the homelessness crisis.”
The decision came soon after a Chamber of Commerce study found that the head tax, otherwise known as the “Make Amazon Pay” levy, would cost 14,000 jobs and slash economic output by $3.5 billion.
Of course, Kshama Sawant isn’t happy, going on a Twitter tirade and describing the move as a “backroom betrayal.”
URGENT ACTION ALERT on Amazon Tax to build affordable housing: @SeattleCouncil will repeal the tax on big biz at noon tomorrow! This is a capitulation to bullying by Amazon & other big biz. This backroom betrayal was planned over weekend w/o notifying movement (incl. my office).
— Kshama Sawant (@cmkshama) June 11, 2018
Councilmembers who said they agree w/ big biz tax to fund affordable housing now want to repeal Amazon Tax coz blatant lies by big biz have impacted public opinion. Well, big biz also spread lies on $15/hour. We won 15 coz we didn’t capitulate, we built movemnt to unmask the lies
— Kshama Sawant (@cmkshama) June 12, 2018
No matter what happens, Jeff Bezos and Co. should flee as soon as they can!
Time for KSHAMA SAWANT and everyone who wants better housing for the poor to use their own money to support it. Time for some Crowdfunding? Every time you tax business more, the price of the products and services go up, basic economics that government Aholes do not understand.