$500 Per Employee Head Tax Proposed in Seattle

The Seattle City Council is considering requiring large companies in the city to pay an additional $500 per person head tax.[1] After a two-year phase-in, the tax would be even higher for the largest companies in the city.

The tax would cost Amazon.com more than $20 million annually. The tech giant has 45,000 employees in the city.[2] In response to the city council plan, the company has paused plans for a major construction project that might bring another 7,000 jobs to Seattle.

One city council member called Amazon’s actions blackmail.[3] Union workers and others, however, have protested the city’s efforts to raise taxes.[4]

If it were to become law, the head tax is projected to raise $75 million annually. Most of that money would be used for the building of affordable housing. However, if companies like Amazon reduce hiring in the city, the revenue could be less than projected. Additionally, the declining levels of job creation could impact other city revenues.

Footnotes:

1. Seattle City Council, "Getting Down to Business: How a Progressive Tax on Business Can Help Seattle Structurally Address Homelessness," accessed May 9, 2018
2. USA Today, "Amazon's fight with Seattle gives second headquarters cities a taste of their future," May 3, 2018
3. Hot Air, "Seattle Council Member Accuses Amazon Of 'Blackmail' Over Class-Warfare Tax Proposal," May 3, 2018
4. The Seattle Times, "Outside Amazon Spheres, iron workers shout down Kshama Sawant over proposed head tax," May 5, 2018

Each weekday, Scott Rasmussen’s Number of the Day explores interesting and newsworthy topics at the intersection of culture, politics, and technology. Columns published on Ballotpedia reflect the views of the author.​

Scott Rasmussen is founder and president of the Rasmussen Media Group. He is the author of "Mad as Hell: How the Tea Party Movement Is Fundamentally Remaking Our Two-Party System," "In Search of Self-Governance," and "The People’s Money: How Voters Will Balance the Budget and Eliminate the Federal Debt." Read more reports from Scott Rasmussen — Click Here Now.