The JumpStart Seattle Spending Plan Is a Good Step Forward

Comments

1

Let's hope it is (state) constitutional.

3

@2 -- The B & O tax is a gross tax, not net. That means that companies that are very profitable (like Amazon) pay a smaller proportion than companies that aren't. The property tax only applies to property. Essentially it is a wealth tax, but only on a certain type of wealth (property and the stuff that sits on top of it). Thus a company (like Amazon) can become extremely profitable, and yet pay relatively little in taxes, while other companies (and individuals) could do the opposite. A grocery store, for example, might be barely scraping by (with little net income), but because they have lots of gross income and the land they own is worth a lot, pay a big proportion of their profits on tax. They may even pay more in B & O taxes than what they made!

My guess is, taxing highly profitable companies at a higher rate is what is meant by "fair share". To be clear, this really isn't a tax on the companies themselves. This is an income tax on high earning individuals who work for large companies (and a tiny income tax at that).

5

@3: "This is an income tax on high earning individuals who work for large companies (and a tiny income tax at that)."

$7M in payroll is not necessarily a "large" company, and the tax is on the job the employer provides, not upon the salary the employee receives. The employer, not the worker, pays the tax. It's a tax on jobs, not income.

(That you have to describe this tax in such deceptive terms suggests talking about it plainly won't make it look good -- and that you know this.)