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Seattle passes payroll tax targeting Amazon and other big businesses
When you tax something, get less of it. If you tax high paying jobs, you'll get fewer high paying jobs.
Oh, and in case you have to ask, government employees are exempt:
This should give you some idea as to why they exempted government employees:
Why The City Of Seattle And Their Police Department Is In Trouble
Ain't democracy grand?
Called the "JumpStart Seattle" tax, the bill passed late Monday on a 7-2 vote and is expected to go into effect in 2021. Money from the tax will initially be used to fund coronavirus relief but will eventually go toward addressing housing and homelessness in Seattle.
Under the measure, businesses with at least $7 million in annual payroll expenses will be taxed 0.7% to 2.4% on the amount they pay Seattle-based employees, with tiers based on individual salary amounts above $150,000. The highest bracket targets companies like Amazon with annual payroll expenses above $1 billion.
When you tax something, get less of it. If you tax high paying jobs, you'll get fewer high paying jobs.
Oh, and in case you have to ask, government employees are exempt:
5.38.040 Exemptions from the payroll expense tax. The following are exempt from the payroll expense tax:1. Any business having payroll expense, as defined under Section 5.38.020,of less than $7million in the most recent complete calendar year.2. Any business engaged in business in Seattle as a grocery business.3. Any individual who is an independent contractor for purposes of the business license tax undersubsection 5.45.090.S and whose compensation is included in the payroll expense of another business subject tothe tax imposed by Section 5.38.030.4. Businesses that are preempted from taxation by cities pursuant to federal or state statutes orregulations, including, but not limited to, the following:a. Insurance businesses and their agents as defined by RCW 48.01.050 and 48.17.010,respectively, and whose total revenue is exempt from the business license tax per Chapter 5.45.b. Businesses that only sell, manufacture, or distribute motor vehicle fuel as defined inRCW 82.38.020 and exempted under RCW 82.38.080.c. Businesses that only distribute or sell liquor as defined in RCW 66.04.010 andexempted in RCW 66.08.120.d. Federal and state government agencies and any local governmental entity.
http://seattle.legistar.com/ViewRep...ithText&Title=Legislation+Details+(With+Text)
This should give you some idea as to why they exempted government employees:
Why The City Of Seattle And Their Police Department Is In Trouble
Ain't democracy grand?