After months of pandemic, and weeks of outrage, finally some good news out of our city. The official City Council press release:
Council Passes Mosqueda’s JumpStart Seattle Progressive Revenue Plan to Address COVID Response, Essential City Services, Affordable Housing
Councilmember Teresa Mosqueda (Position 8, Citywide) and her Council colleagues passed in a 7-2 vote the JumpStart Seattle plan, which would raise over $214 million per year in progressive revenue to respond to the immediate COVID crisis and focus on Seattle’s long-term economic revitalization and resiliency by investing in affordable housing and essential city services.
Increasingly reviled mayor Jenny “Karen” Durkan had vowed to veto the bill, but this is veto-proof-plus-one. She may petulantly leave the bill unsigned, as she’s done to a number of progressive bills already. Sod her.
This bill is especially sweet victory for local progressives, who have for decades seen our majority frustrated by Big Money and Durkan-style politicians, making the city less and less affordable and equitable. In 2018 the council passed a far more modest bill ($47M/year), only to see Amazon et al. intimidate the city with a heavily bankrolled referendum to beat it; the council blinked and reversed its own decision.
Then in fall 2019, Asshole Bezos overplayed his hand. He led a Big Business coalition to run a slate of weak-tea council candidates, in particular taking aim at socialist badass Kshama Sawant. Progressives won across the board; even long-shot underdog Shaun Scott came within 4% in rich, lily-White District 4. Suddenly Seattle had one of the most progressive city councils of any major city in living memory, now with a score to settle, and the very same Sawant as senior member.
Come the pandemic and popular protests, the council has wasted no time. And what a beauty of a bill it is:
The ordinance establishes a tiered system of taxation on companies with annual payroll expenses exceeding $7 million. Employers in the lowest bracket will be taxed:
- 0.7% of annual salaries between $150,000-$399,999
- 1.7% of annual salaries exceeding $400,000
There is a separate tier for companies with annual payroll expenses of more than $1 billion per year. Though the state keeps payroll data confidential, this bracket was likely designed with Amazon in mind. Employers in this tier will be taxed:
- 1.4% of annual salaries between $150,000-$399,999
- 2.4% of annual salaries exceeding $400,000
Indeed, a novel way to spell “AMAZON”!
Oh, and they cannot just turn around and roll it onto employees.
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.
There is also a clause that includes stock payments (but not options, which are worth substantial $$ only if the stock rises) in the assessed salary.
Let’s see if Bezos, who reportedly moved to Seattle mostly because Washington State (shamefully still) does not have a state income tax, is willing to risk a Round Three.
If not, hopefully the city will have budget to start healing the local economy and making it more equitable.