Is the City of Seattle going to ruin their economy with the new head tax?

government solve all problems

Last week the Seattle City Council approved a new head tax on big businesses. The tax is an amount businesses pay per employee ($275 per year), with a sunset clause of 2023 (don’t hold your breath that this tax will actually cease to exist at that time). The head tax was approved by a unanimous vote.

I’ve told you what has led up to this head tax vote. See the following:

Amazon had strong words for the Seattle City Council as it questions its future in the city. “We are disappointed by today’s City Council decision to introduce a tax on jobs,” Amazon Vice President Drew Herdener said in a statement.

More from King5 News:

“Herdener said Amazon, which had paused planning on two downtown Seattle office towers pending the outcome of the vote, would resume construction planning on one of them — Block 18. The 17-story building, which will have 1 million square feet of office space, is meant to house between 7,000 and 8,000 new employees.

But he said Herdener then went on to suggest Amazon’s expansion in the city may be curtailed.“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 then turned the tables, suggesting the people holding the city’s purse strings are the problem.

“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. This revenue increase far outpaces the Seattle population increase over the same time 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,” Herdener said.”

Starbucks also wasn’t too happy and had harsh words for the city:

“The company released this statement, attributed to John Kelly, senior vice president of Global Public Affairs and Social Impact at Starbucks:

This City continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside. If they cannot provide a warm meal and safe bed to a five year-old child, no one believes they will be able to make housing affordable or address opiate addiction. This City pays more attention to the desires of the owners of illegally parked RVs than families seeking emergency shelter.”

Author Travis H. Brown, MBA (read about his background here), predicts that the council just voted to ruin their economy. Travis is the author of several books including “How Money Walks.”

Travis wrote an opinion on Saturday entitled, “How Seattle’s new tax to fight homelessness could ruin its economy.”

Travis describes the city’s actions as shortsighted and a zero-sum game that will do more harm than good.

Excerpts from his piece at MSN:

“These are laudable aims (end homelessness and build affordable housing), but it’s hard to imagine a more destructive strategy for realizing them. The potential damage to Seattle’s economy from this blunt instrument runs into the billions of dollars. Some may believe that California businesses could still flee their high-tax environment for Seattle, but in reality, Seattle is competing with many other cities for this income. One example is Phoenix, which has posted the best income growth of any Metropolitan Statistic Area (MSA) since 1992. Phoenix has capitalized on its proximity to California by luring businesses and people with a low-tax environment that nets them $1,539 in income every single minute. Compared to Seattle, this is nearly $1,200 more per minute, or $70,348 more per day. The numbers are staggering, and Seattle can’t risk putting itself further behind.

Seattle’s $20 million benchmark for the new tax refers to gross receipts, not income, meaning it will hit high-volume, low-margin businesses (think grocery stores or construction wholesalers) just as hard as more lucrative counterparts, promising price increases for consumers as businesses pass along costs. Service industries with big headcounts are firmly in the crosshairs, threatening this key employment category for young and low-skilled workers.

Amazon isn’t the only big employer eyeing the exits. Real estate portal Zillow, another new economy trailblazer, faces millions in additional tax burden. Alaska Airlines, Expedia, PayScale, Whitepages Inc., and Coinstar opposed the tax in vain, pleading in an open letter to the city council and mayor that taxing companies for creating jobs is like “telling a classroom that the students who do the most homework will be singled out for detention.”

Perhaps the most frustrating part of this exercise in illogic is the city government’s failure to enact other commonsense measures to combat homelessness: zoning reforms and infrastructure improvements to facilitate construction of affordable housing; shifting funds from underperforming shelters to ones that deliver; and coordination of the city’s homeless strategy with other municipalities in King County.”

Read his whole opinion piece here.

The background of the Seattle council members:

  • Lisa Herbold: Has been working for government politicians and government agencies since 1997.
  • Bruce Harrell: An attorney who began working in “public service” in 1979 by working for the Seattle City Council.
  • Kshama Sawant: A SOCIALIST.
  • Rob Johnson: A progressive urban planner and transportation advocate who spent ten years working for a statewide nonprofit coalition before working for government agencies.
  • Debora Juarez: A lawyer who concentrated on providing legal and financial counsel to Native American tribes.
  • Mike O’Brien: Served as CFO for a law firm prior to election to city council in 2009. He likes to silence constituents.
  • Sally Bagshaw: First elected to the council in 2009. She began her legal career by working for government agencies and has been working in the public sector since.
  • Teresa Mosqueda: Came to Seattle City Council following a long career effectively advocating for working families.
  • Lorena Gonzalez: Came to Seattle City Council with a decade of experience as a civil rights attorney and community advocate.

Somehow I don’t doubt that business leaders at Amazon, Starbucks (and all the other businesses against this head tax) and Travis know more about Econ 101 than any of the professional advocates/public servants and taxpayer money grabbers on the Seattle City Council.

DCG

27 responses to “Is the City of Seattle going to ruin their economy with the new head tax?

  1. That’s all liberals know how to do, spend other peoples money. No idea’s, just throw money at it.

    Liked by 3 people

  2. “Amazon had strong words for the Seattle City Council as it questions its future in the city.”

    Wow. That left-wing Amazon questions the city government is significant. That alone is a death knell.

    Liked by 5 people

  3. Michael J. Garrison

    I hear you, Doc. Well, I’ve got some strong words for Amazon. You folks see their logo, the “smile.” Look closer. It’s a penis that is about to penetrate the female side of sex. So we have a smile, a penis and the vag. What could this logo possibly be saying?
    Putting all the symbols together we get Amazon’s TRUE FEELINGS: the smile represents “having fun.” The penis going into the female says “screwing America”…..so the logo of Amazon states: Having fun while we screw America.

    Imagine paying NO TAXES. No wonder Google is mad about ANY TAX.
    Anyone still doubt that Freemasons are a protected species??

    Liked by 3 people

  4. xxvamplestatxx

    Thank God, there is no Head Tax in the city of New Orleans. It’s hard enough coming up with the 20 bucks for Head in the Quarter let alone adding a new Tax .

    Liked by 3 people

  5. Any tax enacted will be paid by those that can least afford to pay it. Corporate tax, business tax, etc. are not paid by the corporations or businesses. They simply roll the tax into the cost of their prduct or service. Let that sink in. COMPANIES DO NOT PAY TAXES. You do.
    I doubt eve the Freemasons are as evil as those that have hijacked our government.

    Liked by 4 people

  6. Progressives…

    Liked by 3 people

  7. Ah yes, I suspect that our school’s reluctance to teach simple economics has consequences. I think they’re actually afraid to teach people what fiat money is all about.

    At any rate, I have been through a similar bout (several actually) with state officials over taxes being passed on to customers. In my state there is actually language contained within a tax act that states that the business must bear the cost, not the consumer.

    I’ll pause for a moment to let that sink in. In my discussions with both state and federal officials over this, most were of the opinion that the business owners must bear the complete cost of this tax. I argued that in so doing that would constitute a “fine” not a “tax” and, even so, a fine would ultimately be paid by consumers as well.

    I think what happened was that the authors of the legislation tried to hide this basic fact from the voters by inserting this language. That way they could point at it and say “no, only the business pays”.

    I’m discussing a “Business and Occupational (B&O)” tax that is in place here. This is very complicated to administer as it has various categories of goods and services that are taxed at differing rates. It is always a challenge to get the state to agree with what category and rate a particular service is taxed at.

    In practice, we had the state coming back every couple of years, reshuffling the categories and demanding more money. Of course we paid it because to challenge it meant that we would have to pay substantial interest and penalties later.

    Now, to my original premise. It shows that government ultimately wants the businesses money but doesn’t want to incur the wrath of the taxpayer. This is underhanded. It is also obvious that no one who owns a business is going to pay additional taxes out of his own pocket. So politicians who run on the premise of “sticking it to business” are disingenuous.

    At the end of the day, all governments are giant, ravenous, inefficient beasts who continue to grow and consume the citizens money. They exist to control every aspect of life and to charge the citizenry for the privilege.

    Liked by 5 people

  8. As if our trade agreements aren’t bad enough! During the Bush-managed Reagan years, not only were corporations administratively allowed to leave our country, they were given taxpayers’ money to pay for some of the expenses. We went from being the world’s greatest creditor nation to the world’s greatest debtor nation. Tax revenues could not keep our sound footing, and now business is losing more competitive abilities through additional costs. The results of the taxes are increase in price for products or services, lowering wages of employees, and sale of reduced value in services and goods. The efforts made to provide the reasonable standards held by us gave us child labor laws, work rules, environmental regulations, and food and drug laws among other proper benefits for civilized countries. Such reasonable conditions must be demanded of our foreign competitors. As it is, they are not able to afford a life style they deserve from their labors. When their standard of living rises, corporations will seek other cheap labor in order to maintain or increase profits and power. We must demand parity!
    By the way, who among our foreign competitors will pay our trillions in national debt? Are we to be defeated economically because of our created inability to pay our defense budget? The international bankers are rubbing their hands!

    Liked by 1 person

  9. Reblogged this on necltr and commented:

    At least demand parity unless you want the need for nets outside factory windows to prevent suicides! (Unless you are imposing depopulation.)

    Liked by 1 person

  10. The Seattle Council is drunk on taxpayer money: “The Seattle City Council will vote Monday on a plan to create a Waterfront Local Improvement District that would tax nearby property owners. Money raised would go to waterfront improvement and pay for what the city calls “special benefits.”

    http://mynorthwest.com/995014/city-council-may-vote-on-new-tax-for-seattle-waterfront-properties/

    Liked by 4 people

    • Fiat paper currency from foreign powers to be replaced by fiat chips. Full spectrum dominance, master the human domain! (The ambition of Globalists.) Some have declared our ways with a middle class to be the law of the jungle.

      Liked by 2 people

  11. Pingback: News and Headlines.5/21/2018 – News and Headlines: RoboeAmerican, informing the people.

  12. It’s the commie-lib mantra:

    If it exists, tax it.

    When (not if) Seattle turns into Caracas, I hope they don’t move to Atlanta.

    Liked by 3 people

  13. How can they ruin their economy any worse than it already IS? LOOK at that place!!

    Liked by 2 people

  14. Here we go again, Seattle shooting themselves in the foot. Doesn’t any of the people living there care or pay attention?
    As for Amazon crying foul. They have been given every break out there. Their President is now worth over 100 billion. They have been coddled and pampered and not paying their fair share in postal fees. I have no empathy.

    Liked by 3 people

  15. Wait until the communist elected officials in Seattle get the idea to not just implement a head tax, but also an arm tax, a leg tax, and a boob and weiner tax as well!

    Liked by 2 people

  16. Council member Lorena Gonzalez is a shameless LIAR:

    “Seattle Council used non-existent study to push head tax. Local activist Roger Valdez cites a number of local outlets that covered the report, but argues they never saw it. They were working, essentially, off a summary of the report. But when Valdez pressed the consulting firm for the final study, it became clear it didn’t exist. Rather “it should be ready in a few days.”

    Gonzalez has cited the report, Valdez notes, to justify demanding the hundreds of millions to solve the homelessness crisis. He takes issue with the findings, which is justifiable if there’s no report to review. And it’s beyond unethical to cite a report when you’ve not actually read it. If the comments are based on the summary of the findings, then it suggests neither the Councilwoman nor her staff read the full findings nor the details on how they came to their conclusion.”

    http://mynorthwest.com/997627/seattle-non-existent-head-tax-study/

    Liked by 2 people

  17. “A coalition of the Seattle City Council’s most progressive council members gave talking points to hand-selected activist groups to help promote the head tax, emails reveal.

    There’s nothing illegal or unethical about this but it does offer an interesting look at the inner workings of an anxious council rounding up support for a controversial tax.”

    http://mynorthwest.com/1005494/councilmembers-coordinated-coverage-of-head-tax-with-activist-groups/

    Like

    • They are liars. They have no shame or ethics. Again, without faith people don’t have morals. All of these communists believe that lying is acceptable if it gets them what they want.

      They have no consideration for other people’s beliefs. Theirs are the only ones that matter. This is due to their absolute need to “belong”. They want to embrace The State as their “lord and savior” and they’ll do anything to get what they’re after.

      I saw today that California now has a law that assesses HUGE fines for people who launder and shower on the same day. Meanwhile, Nestle can take all the free water they like. That Jerry Brown is the Devil himself (or very close to it).

      Liked by 3 people

  18. Let’s run a bet on the date the Bank of International Settlements takes over the city.

    Like

  19. I’m kind of shocked at this news: Seattle City Council calls special meeting to discuss repeal of Seattle head tax

    http://mynorthwest.com/1016040/seattle-head-tax-repeal-meeting/

    Liked by 2 people

    • Well obviously their owners have told them to back off. The fact that they would even try something like this should be enough to get them thrown out of office and chased through the streets.

      All of these creeps are addicted to taking money from the productive and wasting vast sums on the unproductive. I’m quite certain they manage to fatten their wallets in the process.

      Liked by 2 people

      • The socialist Kshama Sawant council member does not approve! Good!

        Liked by 2 people

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