Between the pandemic and civic unrest, Seattle’s financial system isn’t in the most effective form. But now the Metropolis Council has determined that is the proper second to slap companies with a big new tax on employment. In a misnomer for the ages, they’re calling it the “JumpStart Seattle” tax.
Recall that in 2018 Seattle handed a $47 million annual “head tax,” solely to repeal it after a livid public realized it penalized job creation. Regardless of, the socialists who dominate the Metropolis Council handed a brand new iteration this week that’s greater than 4 occasions larger and punishes employers for paying good wages.
Starting subsequent yr, some 800 companies with a payroll over $7 million can pay a tax of between 0.7% and a couple of.4% on all salaries over $150,000. Authorities jobs are after all exempt, and the Metropolis Council already has plans to spend the estimated $200 million or extra in annual income on reasonably priced housing, Inexperienced New Deal initiatives, and different progressive desires.
Councilwoman Teresa Mosqueda says the tax will create a “extra strong and resilient financial system,” however how taxing job creation accomplishes that may be a thriller. The tax will stifle financial upward mobility, since employers could have an incentive to not elevate pay above $150,000. Even earlier than Mayor Jenny Durkan tolerated the latest weeks-long experiment in anarchy in downtown Seattle, it was clear the town’s enterprise local weather had grown more and more hostile.