Here's what happens next with Seattle's $275-per-employee head tax

Here's what happens next with Seattle's $275-per-employee head tax

Here's what happens next with Seattle's $275-per-employee head tax

On Monday, Seattle passed a per-employee tax of $275 each year on businesses grossing more than $20 million annually. Over the weekend Councilmember Lorena Gonzalez worked with Mayor Jenny Durkan to come up with a plan they could both support.

"I think we have to convince the public that we're using [funds] wisely and strategically, and I think we've failed in that regard as a city", said Council President Bruce Harrell during Monday's meeting.

Speculation that Seattle's new head tax could be a boon for neighboring cities has been swirling since before the City Council approved the controversial legislation Monday afternoon. What are some alternatives to solving the city's homeless problem?

Seattle is also home to the third-largest concentration of homeless people in the US.

Council members who sponsored the initial proposal said the amount wasn't enough to address urgent housing needs but conceded they couldn't get the six votes to override a potential veto by the mayor. And a so-called millionaires tax - which would raise state taxes on income above $1 million - could go before voters in November, though the Massachusetts High Tech Council and other business groups are suing to keep it off the ballot.

In response to the plan, internet giant Amazon threatened to stop work on a 17-story tower it was building near its South Lake Union district corporate headquarters. The firm posted net revenue of $177.8 billion Dollars in 2017. The Council has estimates that the tax will raise roughly $47 million a year on average.

He said he was anxious about the effect the larger tax would have had on jobs in part because of concern over how the money would be spent. They called it a tax on jobs and questioned whether city officials were spending current resources effectively.

"This City continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside".

Head tax supporters marched on Amazon Saturday, led by Sawant and the Affordable Housing Alliance. As such, many homeless individuals are bounced from place to place, or forced to live on the street while seeking affordable housing within the city. Amazon Vice President Drew Herdener said the company is "disappointed".

The plan approved by the council represents a compromise from the original version which would have taxed companies $500 per employee and raised $75 million a year. Previous year the city spent $68 million on homeless services. The move by the world's largest online retailer, owned by billionaire entrepreneur Jeff Bezos, put in question more than 7,000 new jobs.

Marilyn Strickland, the head of Seattle's chamber of commerce, voiced business leaders' opposition to the tax. Herbold also said she expects King County and the state will add to Seattle's effort with increased regional spending on the crisis.

"Taxing jobs will not fix our region's housing and homelessness problems".

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