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I have no idea what you're responding to. As Ive stated this is a PAYROLL tax, NOT a personal income tax, so I dont know where a W-2 would come in to it. A payr

I have no idea what you're responding to. As Ive stated this is a PAYROLL tax, NOT a personal income tax, so I dont know where a W-2 would come in to it. A payroll tax, like B&O taxes, are paid directly by the business. This is a very important distinction because this tax would (presumably) be applied in the same manner to all business operating in the city of Seattle. Secondly you appear to be objecting to the opinions & phrases of a random opinion piece writer who's positioning this as "tax on the rich." That's fine, and the columnists obvious slant is pretty silly IMO, but I dont know why it's relevant to my comment about the distinction between income and payroll.

topkai22 6y ago
The most common payroll taxes (social security and Medicare) are paid jointly by the employer and employee. Just saying “it’s a payroll tax” does not imply it went won’t show up on a W2 or be paid by the employee.
- donavanm 6y ago
  Fair enough. There is a meaningful difference in taxes based on payroll vs the individuals net income. And that's not exactly germane to this article or thread. I should have been even more explicit in saying this is a payroll expense tax. The authors are very explicit that this is tax on the business and not any sort of tax born by the employee: > 5.45.090.S “Payroll expense” means the compensation paid in Seattle to employees. > 5.38.030.B The amount of the payroll expense tax due shall be the payroll expense of the business ... multiplied by the following rates: > 5.38.030.C The tax imposed by this Chapter 5.38 is levied on businesses. A business may not make any deductions from employees’ compensation to pay for this tax. > 5.38.090 ... taxes shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the operating overhead or cost of doing business of such persons. And this all matters because as soon as it looks like a non uniform property tax (ie a graduated income tax) it's prempted by WA state constitution Article VII Section 1.
hammock 6y ago
B&O tax is levied on gross receipts; this "boss tax" is a payroll tax, levied on worker's compensation. Whether or not it is shown on a worker's paycheck as a withheld amount or not has little bearing on its general effect of depressing wages that employers are willing and able to pay to employees. My point was that this tax will tend depress real wages - which have been stagnant since the 70's - and which are the primary mode of income for many working classes - while having little effect on a much richer set of people (such as the "CEO" in "CEO tax") who derive their livelihood from business and investment income moreso than wages or compensation.

topkai22 6y ago

The most common payroll taxes (social security and Medicare) are paid jointly by the employer and employee. Just saying “it’s a payroll tax” does not imply it went won’t show up on a W2 or be paid by the employee.

donavanm 6y ago
Fair enough. There is a meaningful difference in taxes based on payroll vs the individuals net income. And that's not exactly germane to this article or thread. I should have been even more explicit in saying this is a payroll expense tax. The authors are very explicit that this is tax on the business and not any sort of tax born by the employee: > 5.45.090.S “Payroll expense” means the compensation paid in Seattle to employees. > 5.38.030.B The amount of the payroll expense tax due shall be the payroll expense of the business ... multiplied by the following rates: > 5.38.030.C The tax imposed by this Chapter 5.38 is levied on businesses. A business may not make any deductions from employees’ compensation to pay for this tax. > 5.38.090 ... taxes shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the operating overhead or cost of doing business of such persons. And this all matters because as soon as it looks like a non uniform property tax (ie a graduated income tax) it's prempted by WA state constitution Article VII Section 1.

hammock 6y ago

B&O tax is levied on gross receipts; this "boss tax" is a payroll tax, levied on worker's compensation. Whether or not it is shown on a worker's paycheck as a withheld amount or not has little bearing on its general effect of depressing wages that employers are willing and able to pay to employees. My point was that this tax will tend depress real wages - which have been stagnant since the 70's - and which are the primary mode of income for many working classes - while having little effect on a much richer set of people (such as the "CEO" in "CEO tax") who derive their livelihood from business and investment income moreso than wages or compensation.