4 ms·

Seattle repeals tax on companies like Amazon

26 points by uptown 8y ago

maym86 8y ago
This is depressing. We can't even get $275 per full-time worker each year (previously reduced from $500) from some of the worlds richest companies to pay towards the homelessness situation they have helped create. Jeff Bezos wants to build houses on the Moon. How about helping out here on Earth first. https://www.theregister.co.uk/2018/05/03/bezos_billions_space/ https://www.theregister.co.uk/2018/05/03/bezos_billions_spac...
- prolikewhoa 8y ago
  Absolutely depressing. It sets a precedent that businesses own this city and can control everything. This was a tax of something like 0.2% on Uwajimaya and Dicks Burgers and only effected companies making $20mil+ in revenue and only impacted their Seattle workers. It wasn't a tax on individuals, it wasn't coming out of individuals paychecks. While I fully agree that the city should've had a detailed plan for where this money was going to effectively help the homeless/low income, do people really think these companies would have just been like "yeah, this looks good" and cut a check annually? No. This is a sad outcome for the city of Seattle in my opinion. The sky didn't fall after the $15 minimum wage passed, and it didn't fall after the head tax was originally passed a month ago.
- klipt 8y ago
  I think economists generally agree that a flat per-head tax is regressive and bad policy. If you're going to tax workers, why not a progressive income tax?
  - maym86 8y ago
    This is a tax on the company. This is not a direct tax on workers. A flat tax on people I agree is bad policy. This is not that. It isn't even a flat tax on companies as requires the company to have a large minimum amount of revenue. Increased tax on large profitable companies in another form would also be fine.
  - prolikewhoa 8y ago
    The thing is, it wasn't taxing workers. It was taxing businesses. This was _not_ coming out of workers paychecks. Income tax is illegal per the WA state constitution.
mstrum 8y ago
Good, this was a terrible choice made by an inept city council without the backing of the people. Other ways need to be explored before throwing more money at the system. Now people need to actually work on the problem instead of fundraising.
- prolikewhoa 8y ago
  Without the backing of the people? Can you cite evidence of this? Also, why was it a terrible choice? I keep hearing this same exact argument parroted everywhere from Twitter, Facebook, to now HN.
  - mstrum 8y ago
    Because it wasn't voted on [by the people], the council just came up with it and voted themselves (a whole 9 people). Enough people signed the petition recently to make it come to a vote, hence them repealing it today - because the people didn't want it.
    - prolikewhoa 8y ago
      The signatures would've created a referendum to vote on it in November. Now there is no chance to vote on it. Also, the city council is voted in by the people as representatives -- it's literally how our "democracy" works. Canvassers even lied to people to get them to sign. No surprise from scummy business owners like Saul Spady of Dicks Burgers who now enjoys a booming restaurant industry after campaigning AGAINST the $15 min wage. That guy is truly a dick. https://www.thestranger.com/slog/2018/06/06/27190451/audio-and-video-show-canvassers-spreading-false-information-about-the-head-tax https://www.thestranger.com/slog/2018/06/06/27190451/audio-a...
NathanKP 8y ago
Raising money to help the homeless is needed, but I really don't understand why Seattle felt it needed an extra tax on businesses. In my mind: 1. Cost of living and property values go up in the city 2. Higher property values mean more property taxes go into the coffer 3. Spend some of that money on helping those negatively effected by rising cost of living and property value Instead Seattle wanted both the extra property tax income and an extra business tax. Seems sketchy to me. Where is all that property tax money going and how much is being wasted that they can't put together $48 million to help the homeless? Especially when the city is already going to be raising property taxes even more on top of the added base value of the properties. In some places the property tax is going up as much as 30% and on average 17% in 2018! King County is going to get $5.6 billion in property tax in 2018. In comparison $48 million is a tiny number.
- maym86 8y ago
  It's also "a tiny number" to the big businesses. Why resist paying it so strongly? It probably doesn't seem like such a tiny number if you're homeless.
  - seabird 8y ago
    "It's OK to throw away money because a big business can afford it" is not a very compelling argument. If an increase in property tax is more than enough to cover it, what reason would you have to collect the business tax other than to spite the companies that are affected by it?
    - maym86 8y ago
      It's nothing to do with spite nor is it throwing money away. It's about redirecting money from some of the richest companies in the world to help people who have nothing.
    - prolikewhoa 8y ago
      Why would you put the taxes on the people instead of the businesses over $20 mil in revenue making record profits? It makes no sense. We have enough regressive taxes.

26 points by uptown 8y ago

This is depressing. We can't even get $275 per full-time worker each year (previously reduced from $500) from some of the worlds richest companies to pay towards the homelessness situation they have helped create. Jeff Bezos wants to build houses on the Moon. How about helping out here on Earth first. https://www.theregister.co.uk/2018/05/03/bezos_billions_space/ https://www.theregister.co.uk/2018/05/03/bezos_billions_spac...

prolikewhoa 8y ago
Absolutely depressing. It sets a precedent that businesses own this city and can control everything. This was a tax of something like 0.2% on Uwajimaya and Dicks Burgers and only effected companies making $20mil+ in revenue and only impacted their Seattle workers. It wasn't a tax on individuals, it wasn't coming out of individuals paychecks. While I fully agree that the city should've had a detailed plan for where this money was going to effectively help the homeless/low income, do people really think these companies would have just been like "yeah, this looks good" and cut a check annually? No. This is a sad outcome for the city of Seattle in my opinion. The sky didn't fall after the $15 minimum wage passed, and it didn't fall after the head tax was originally passed a month ago.
klipt 8y ago
I think economists generally agree that a flat per-head tax is regressive and bad policy. If you're going to tax workers, why not a progressive income tax?
- maym86 8y ago
  This is a tax on the company. This is not a direct tax on workers. A flat tax on people I agree is bad policy. This is not that. It isn't even a flat tax on companies as requires the company to have a large minimum amount of revenue. Increased tax on large profitable companies in another form would also be fine.
- prolikewhoa 8y ago
  The thing is, it wasn't taxing workers. It was taxing businesses. This was _not_ coming out of workers paychecks. Income tax is illegal per the WA state constitution.

mstrum 8y ago

Good, this was a terrible choice made by an inept city council without the backing of the people. Other ways need to be explored before throwing more money at the system. Now people need to actually work on the problem instead of fundraising.

prolikewhoa 8y ago
Without the backing of the people? Can you cite evidence of this? Also, why was it a terrible choice? I keep hearing this same exact argument parroted everywhere from Twitter, Facebook, to now HN.
- mstrum 8y ago
  Because it wasn't voted on [by the people], the council just came up with it and voted themselves (a whole 9 people). Enough people signed the petition recently to make it come to a vote, hence them repealing it today - because the people didn't want it.
  - prolikewhoa 8y ago
    The signatures would've created a referendum to vote on it in November. Now there is no chance to vote on it. Also, the city council is voted in by the people as representatives -- it's literally how our "democracy" works. Canvassers even lied to people to get them to sign. No surprise from scummy business owners like Saul Spady of Dicks Burgers who now enjoys a booming restaurant industry after campaigning AGAINST the $15 min wage. That guy is truly a dick. https://www.thestranger.com/slog/2018/06/06/27190451/audio-and-video-show-canvassers-spreading-false-information-about-the-head-tax https://www.thestranger.com/slog/2018/06/06/27190451/audio-a...

NathanKP 8y ago

Raising money to help the homeless is needed, but I really don't understand why Seattle felt it needed an extra tax on businesses. In my mind: 1. Cost of living and property values go up in the city 2. Higher property values mean more property taxes go into the coffer 3. Spend some of that money on helping those negatively effected by rising cost of living and property value Instead Seattle wanted both the extra property tax income and an extra business tax. Seems sketchy to me. Where is all that property tax money going and how much is being wasted that they can't put together $48 million to help the homeless? Especially when the city is already going to be raising property taxes even more on top of the added base value of the properties. In some places the property tax is going up as much as 30% and on average 17% in 2018! King County is going to get $5.6 billion in property tax in 2018. In comparison $48 million is a tiny number.

maym86 8y ago
It's also "a tiny number" to the big businesses. Why resist paying it so strongly? It probably doesn't seem like such a tiny number if you're homeless.
- seabird 8y ago
  "It's OK to throw away money because a big business can afford it" is not a very compelling argument. If an increase in property tax is more than enough to cover it, what reason would you have to collect the business tax other than to spite the companies that are affected by it?
  - maym86 8y ago
    It's nothing to do with spite nor is it throwing money away. It's about redirecting money from some of the richest companies in the world to help people who have nothing.
  - prolikewhoa 8y ago
    Why would you put the taxes on the people instead of the businesses over $20 mil in revenue making record profits? It makes no sense. We have enough regressive taxes.