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Seattle Passes New Tax On City’s Biggest Companies To Combat Housing Crisis

8 comments, 210 views, posted 3:49 am 16/05/2018 in Business by LordViscera
LordViscera has 18149 posts, 2552 threads, 305 points, location: 1123 6536 5321
Jarl of Glencoe

Following the council vote, Amazon’s vice president, Drew Herdener, said the company has resumed construction planning for its so-called Block 18 project in downtown Seattle.

SEATTLE (Reuters) - Seattle’s city council on Monday approved a new tax for the city’s biggest companies, including Amazon.com Inc., to combat a housing crisis attributed in part to a local economic boom that has driven up real estate costs at the expense of the working class.

Amazon, the city’s largest employer, said after the vote that it would go ahead with planning for a major downtown office building that it earlier had put on hold over its objections to a much stiffer tax plan originally proposed.

As passed on a 9-0 vote after a boisterous public hearing, the measure would apply to most companies grossing at least $20 million a year, levying a tax of roughly 14 cents per employee per hour worked within the city - about $275 annually for each worker.

Side note, today Amazon closed $32.70 down and Starbucks down .34. So the market isn't happy with the future prospects of this from a business point of view

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Comments

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2:23 pm 16/05/2018

Flee

What ever happened to just asking for assistance or go to these companies with an incentive to assist? Why jump right to taxing them?

PR wise, it would look good for Amazon to be able to say "there is a housing problem in this city and we are here to help!", Instead of just reaching in their pocket and taking money?

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3:12 pm 16/05/2018

LordViscera

the reality is, it isn't Amazon's responsibility to lose money to augment the ridiculous and unsustainable policies that the local govt has decided to pass. They have made a decision to encourage homelessness, not just help out those who are finding themselves in that situation

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3:28 pm 16/05/2018

Flee

This will just boil down to the corps controlling the govt after the govt is in debt to them

1
3:31 pm 16/05/2018

Flee

If anyone watched Continuum this is what happened. Govt got in such a huge debt that corps bailed them out and took over

0
3:31 pm 16/05/2018

LordViscera

well, I think it will boil down to, does Amazon have a fiduciary responsibility to their shareholders to lower expenses and increase profits? By staying in a state that is getting a chubby by taking money from corps to give to their particular agendas that will cost the people who are "business partners" to lose money. And that cascading effect will force the company to shift gears mid stream

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3:32 pm 16/05/2018

MASTERV

My problem is that instead of cutting spending on salary and pensions along with cutting wasteful or un-needed spending... The government aproach is to raise taxes and fees. Second problwm is when a government run program is failing, the fix is always throw more money at it not change the approach or find new people to manage it.

If the city was not in debt had a balanced budget then raising money to address a problem would be met with less resistance. Having a working plan might negate the need for extra funding at all.

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3:32 pm 16/05/2018

LordViscera

fiscal responsibility, imagine that

2
3:58 pm 16/05/2018

HariSeldon

plot twist. The city councilman pushing the law owns a business park in Bellevue Washington

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