Seattle approves ‘head tax’ on large businesses despite Amazon’s opposition

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RxCowboy

Has no Rx for his orange obsession.
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#1
Does anyone want to bet that it neither raises the projected revenue or proves effective at battling homelessness? Anyone? From foxbusiness.com:

Seattle approves ‘head tax’ on large businesses despite Amazon’s opposition

By Thomas Barrabi
Published May 14, 2018
PoliticsFOXBusiness

The Seattle City Council on Monday approved a pared-down version of the “head tax” on the metro area’s largest employers to fund efforts to battle homelessness despite public criticism from local businesses, including e-commerce giant Amazon.

Approved by a vote of 8-1 on the amended version, the measure will go into effect in January 2019 and tax companies that earn $20 million or more in annual sales 14 cents per employee hour, or $275 per employee annually. The tax is expected to raise roughly $50 million per year toward outreach efforts for the homeless, including affordable housing and emergency shelter.

Proponents on the city council reluctantly agreed to reduce the scope of the bills, which originally called for a tax of 26 cents per employee hour to raise about $75 million annually. Seattle Mayor Jenny Durkan had vowed to veto the larger tax.

While supporters said the head tax was necessary to fund efforts to address a housing crisis and rising homelessness in the city, the measure was met with near-universal opposition from businesses, as well as the Seattle Metropolitan Chamber of Commerce.

In the days ahead of the vote, Amazon said it had halted planning on a new 17-story office tower pending the city council’s decision. The Seattle-based e-commerce company employs more than 40,000 workers in Seattle, with plans for further expansion.

Amazon vice president and spokesman Drew Herdener said the company is "disappointed" with the Seattle City Council's decision to impose the tax.

“While we have resumed construction planning for Block 18, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here,” Herdener said. “City of Seattle revenues have grown dramatically from $2.8B in 2010 to $4.2B in 2017, and they will be even higher in 2018.”

Herdener added that city revenue "far outpaces" Seattle's population growth over the same period.

"The city does not have a revenue problem – it has a spending efficiency problem. We are highly uncertain whether the city council’s anti-business positions or its spending inefficiency will change for the better," he said.

Seattle-based coffeehouse chain Starbucks did not immediately respond to FOX Business’s request for comment on the city council’s decision.

Boeing, Costco Wholesalers and Microsoft, which are each among Seattle’s largest employers, declined to comment on the matter.

This story has been updated.
 
Nov 26, 2008
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The city government in Seattle is absolutely clueless about economic realities.

This isnt even the first dumb tax. They have an insane "sugary" drink tax that almost doubles the price of soda, energy drinks, Gatorade type drinks, etc within the city limits. The government officials have been shocked that it hasn't been having the effect they wanted. There are actually officials who were shocked that the Costcos, WalMarts, etc of Seattle are passing the cost on to customers. They actually thought the stores would just eat the cost! They were also blindsided by the fact Seattle residents have the means to go shopping outside of the city limits to save money.
 

sc5mu93

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#7
For real though I hope Amazon moves its second HQ to the DFW area. That would be cool.
There was an article recently saying that Arlington has been rejected. City Officials speculated that it was because it wasn't "urban" enough. That doesn't bode well for the rest of DFW in my mind, or anywhere not on the east coast. In my mind, NVa and Boston are the front runners.
 

OSUCowboy787

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There was an article recently saying that Arlington has been rejected. City Officials speculated that it was because it wasn't "urban" enough. That doesn't bode well for the rest of DFW in my mind, or anywhere not on the east coast. In my mind, NVa and Boston are the front runners.
Not sure where you read Arlington was even a choice...

From a DFW news station

The DFW-area proposal includes pitches from about a dozen cities and lays out more than 30 potential sites for HQ2. The official regional proposal has not been disclosed, but many city officials, developers, property owners and architects have spoken to the Dallas Business Journal about their proposals.

Sites in downtown Dallas seemed to be the frontrunners when Amazon visited in February, sources familiar with the search said.
In addition to Dallas, Fort Worth, Frisco, Allen, Plano, Irving, Richardson, Denton, Carrollton and Westlake are among the North Texas cities believed to be represented in the DFW packet sent to Amazon.
 

teibbor

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Not sure where you read Arlington was even a choice...

From a DFW news station

The DFW-area proposal includes pitches from about a dozen cities and lays out more than 30 potential sites for HQ2. The official regional proposal has not been disclosed, but many city officials, developers, property owners and architects have spoken to the Dallas Business Journal about their proposals.

Sites in downtown Dallas seemed to be the frontrunners when Amazon visited in February, sources familiar with the search said.
In addition to Dallas, Fort Worth, Frisco, Allen, Plano, Irving, Richardson, Denton, Carrollton and Westlake are among the North Texas cities believed to be represented in the DFW packet sent to Amazon.
http://money.cnn.com/2018/05/16/technology/amazon-hq2-arlington-texas/index.html
 

SLVRBK

Johnny 8ball's PR Manager
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The city started The committee to end homelessness in 2005 with a 10 year plan to end homelessness, this was funded with $46 mil per year. Homelessness has increased so obviously it was a funding issue and $50 mil a year will cure the problem.
 

RxCowboy

Has no Rx for his orange obsession.
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The city started The committee to end homelessness in 2005 with a 10 year plan to end homelessness, this was funded with $46 mil per year. Homelessness has increased so obviously it was a funding issue and $50 mil a year will cure the problem.
Utilitarianism is consequentialistic. That means results are important and intentions are irrelevant. Thus, programs must produce the intended outcomes or should be abandoned. This never happens.