Businesses In Seattle Oppose Head Tax

Over 100 companies with EIN Number in Seattle have bonded together to oppose a proposed tax bill aimed at help homeless people in the city by funding homelessness programs.

Dozens upon dozens Seattle businesses signed a letter aimed, joining together in a single collective formed for opposing a proposed “head tax” on large businesses in the city in order to fund programs for the homeless Seattle people.

The open letter was sent to the Seattle City Council, signed by a total of 131 top company executives, with the letter saying that the tax wouldn’t address the issues of rising housing prices and the homelessness that have been plaguing the city. According to the letter, the proposed tax would only burden and hamper job creating companies in the city with their EIN Number instead of deal with the issue it is supposedly aimed to deal with.

The proposed head tax would only impact Seattle companies with an annual revenue of at least $20 million. If the tax goes through, these companies would be legally required  to pay a 26 cent levy to every Seattle employee for every hour of work, which amounts to an annual additional cost of $540 for every full-time staffer annually.

The letter says that, instead of a clear, strategic plan to address growth, the council’s proposed to tax the top 3% of the city’s businesses. Additionally, the letter claims that this is akin to telling a class of students that the ones who submit the most homework will be sent to detention. The companies said, via the letter, that they are against the City Council’s approach, because it’s effectively saying to the city’s businesses that if they create a lot of jobs, and invest in growth, the city will punish you.

Notably, however, Seattle’s largest private employer, the tech giant Amazon, didn’t throw their backing to the letter, with the company’s Web Services CEO Andy Jassy saying that the city council would find better results by working with the city’s community.

Supports of the head tax, like organized labor groups in the city, say that the proposed tax will address the homelessness plaguing the city by creating affordable housing, with an approximate of 75% of the revenue from the tax going to the construction of about 1,780 housing units over five years.

By Nikki Sanderson Posted in Business