Well, Seattle has gone and done it. In a misguided attempt to solve all their problems, Seattle has voted 9-0 to impose the much feared “head tax” on companies that turnover more than $20 million. This tax will see companies pay extra money for each hour an employee works; for some companies, this bill will be in the millions.
What this will guarantee is that no new businesses will be relocating to Seattle and that even the more than 500 businesses that are eligible for this tax will start looking to get out. John Kelly, head of Starbucks, said:
“This City continues to spend without reforming and fail without accountability while ignoring the plight of hundreds of children sleeping outside. If they cannot provide a warm meal and safe bed to a five-year-old child, no one believes they will be able to make housing affordable or address opiate addiction. This City pays more attention to the desires of the owners of illegally parked RVs than families seeking emergency shelter.”
And he might be right. The city does not seem to have any concrete plans other than tax business and spend on untested projects.
Amazon Vice President Drew Herdener had strong words for the city leaders:
“The city does not have a revenue problem — it has a spending efficiency problem. We are highly uncertain whether the City Council’s anti-business positions or its spending inefficiency will change for the better.”