Interesting study in big business vs politics

[Northwoods]

The Seattle City Council, trying to solve it's growing homeless problem, passed a “head tax” that levied a $275 per employee tax on Seattle businesses making more than $20 million a year.

Then, Amazon announced that it was halting construction on a downtown Seattle tower. The company was considering subleasing space instead—implying that they might leave Seattle if the head tax passed. Then the Building and Construction Trades Council (building that tower) protested the tax saying it would kill construction jobs.

The council then voted to repeal that head tax, in a 7-2 vote.

What changed council members’ minds was a campaign opposing the tax and also criticizing Seattle’s city council. Council members worried that they’d get voted out of office.

I found this story very interesting. Politicians/people, who want to tax businesses/wealthy individuals to pay for all the social programs, just want those businesses/wealthy individuals to "pay up." But those businesses/wealthy individuals have choices. They can move their HQ, or move their primary residence, or pay a lot of tax lawyers to figure out how to game the system. Corporations move their HQ out of the US to avoid taxes.
So don't assume that "taxing the wealthy corporations and individuals" is the answer. Because they also have options and they will figure out a way to minimize their tax liability.
I also thought it was VERY interesting that politicians stopped fighting when they thought it might cost them their jobs.

Here's the article:
How Amazon Killed Seattle's Head Tax - The Atlantic (https://www.theatlantic.com/technology/archive/2018/06/how-amazon-helped-kill-a-seattle-tax-on-business/562736/)

[Kenswing]

Well, they just passed an even bigger tax than what was proposed and repealed..

Seattle City Council approves new tax on big business - ABC News (https://abcnews.go.com/Business/wireStory/seattle-city-council-approves-tax-big-business-71640502)

SEATTLE -- The Seattle City Council on Monday approved adopting a new tax on large businesses, two years after the council repealed a big business tax amid pressure from corporations such as Amazon and the prospect of a voter referendum.

The new tax called “JumpStart Seattle,” from lead sponsor and council member Teresa Mosqueda, will target companies with many highly paid employees, whereas the 2018 “head tax” would have applied to all employees at large companies.

The council voted 7-2 on the measure, which is expected to raise more than $200 million per year. The tax repealed by the council in 2018 weeks after it was adopted was expected to raise $47 million per year.

Under the new tax, companies with annual payrolls over $7 million will be taxed based on their pay to employees making over $150,000 per year. As amended in committee last week, the tax rate would range from 0.7% to 2.4%, with tiers for various payroll and salary amounts.

Money from the tax will be used to underwrite $86 million in coronavirus relief to shore up city services as Seattle emerges from the pandemic and over the long term to pay for affordable housing, business assistance and community development. The bill was amended Monday to exempt some health care organizations for three years during the coronavirus crisis and to allow the law to end, or sunset, 20 years after it is enacted.


I guess they found their way to pay for all of the CHOP damage.

[golfing eagles]

Well, they just passed an even bigger tax than what was proposed and repealed..

Seattle City Council approves new tax on big business - ABC News (https://abcnews.go.com/Business/wireStory/seattle-city-council-approves-tax-big-business-71640502)





I guess they found their way to pay for all of the CHOP damage.

Now they have to find a way to pay for the mass corporate exodus. Maybe Boeing and Amazon will relocate to Central Florida:1rotfl::1rotfl::1rotfl:

[Stu from NYC]

When they will increase taxes on everyone due to businesses fleeing wonder if they keep their jobs.

Hopefully people remember what their representatives did to their city

[davem4616]

What is it with Seattle? That city's leadership seems to have gone totally off the rails.

[Stu from NYC]

What is it with Seattle? That city's leadership seems to have gone totally off the rails.

They seem to want socialism. Wonder how they think they will pay for the free stuff when the jobs are gone

[jebartle]

They seem to want socialism. Wonder how they think they will pay for the free stuff when the jobs are gone

Free is never free!!!

[Stu from NYC]

Free is never free!!!

It is free until they run out of other peoples money

[stadry]

as goes seattle, so goes ny

[Dana1963]

Sounds similar to Sumter Commissioners Tax increase on Sumter County residents for infrastructure construction subsidizing the Morse Syndicate

[Bay Kid]

What is it with Seattle? That city's leadership seems to have gone totally off the rails.

Have you heard what the Seattle councilperson muslim, hateful woman, says about our country? Is this the direction our country going.

[rlcooper70]

One takeaway from this discussion may be that if we are going to create new benefits we have to have the guts to pass a tax to pay for it.

Our current government spends without raising the money - completely irresponsible. Seattle did not do the tax so now they have to figure out how to pay for their support of the increasing homeless population. It's good they are addressing the issue with some responsibility.

[HappyRetired]

Sounds similar to Sumter Commissioners Tax increase on Sumter County residents for infrastructure construction subsidizing the Morse Syndicate

Exactly. They increased taxes last year and this year they "find" all the new homes that will increase revenue so they can lower taxes--and announce it just prior to elections. They knew all the homes were planned and being built. It was a smokescreen to look good for elections. Then the backroom write-in to keep residents from voting their choices. Never thought I'd say "dirty GOP politics" and my father would turn over in his grave at the way things are.

[Guitarman1951]

The Seattle City Council, trying to solve it's growing homeless problem, passed a “head tax” that levied a $275 per employee tax on Seattle businesses making more than $20 million a year.

Then, Amazon announced that it was halting construction on a downtown Seattle tower. The company was considering subleasing space instead—implying that they might leave Seattle if the head tax passed. Then the Building and Construction Trades Council (building that tower) protested the tax saying it would kill construction jobs.

The council then voted to repeal that head tax, in a 7-2 vote.

What changed council members’ minds was a campaign opposing the tax and also criticizing Seattle’s city council. Council members worried that they’d get voted out of office.

I found this story very interesting. Politicians/people, who want to tax businesses/wealthy individuals to pay for all the social programs, just want those businesses/wealthy individuals to "pay up." But those businesses/wealthy individuals have choices. They can move their HQ, or move their primary residence, or pay a lot of tax lawyers to figure out how to game the system. Corporations move their HQ out of the US to avoid taxes.
So don't assume that "taxing the wealthy corporations and individuals" is the answer. Because they also have options and they will figure out a way to minimize their tax liability.
I also thought it was VERY interesting that politicians stopped fighting when they thought it might cost them their jobs.

Here's the article:
How Amazon Killed Seattle's Head Tax - The Atlantic (https://www.theatlantic.com/technology/archive/2018/06/how-amazon-helped-kill-a-seattle-tax-on-business/562736/)
It's called all good for politicians to put on a good show until reality sets in.

[Stu from NYC]

Have you heard what the Seattle councilperson muslim, hateful woman, says about our country? Is this the direction our country going.

Have to scratch my head about her. If married her husband is totally in charge and if he wants to beat her he just has to ask her to bring him the belt.

Why in the world would a woman want to subject herself and daughters to such abuse?

[J1ceasar]

New York, New Jersy and Connecticut all have an exodus of high earning taxpayers . millionaires leave and only come back for vacations.

[sloanst]

Businesses will pay taxes or paychecks. The government hasn't figured that out yet. Makes you wonder about the intelligence level(s) of politicians.

[Stu from NYC]

Businesses will pay taxes or paychecks. The government hasn't figured that out yet. Makes you wonder about the intelligence level(s) of politicians.

Very true, most economists subscribe to the theory that businesses do not pay taxes but pass it on to customers in the form of higher prices.