Seattle Passes Up Opportunity to Tax Big Businesses
As city councilmembers work on passing a city budget, solutions to the growing wealth disparities and surging homelessness crisis remains at the forefront of deliberations. Yet, the Seattle City Council on Tuesday voted down a proposal that would have taxed businesses grossing more than $10 million in order to fund housing and homelessness needs.
The HOMES (Housing, Outreach Mass-Entry Shelter) plan that was defeated 5-4 would have generated about $25 million annually by employing a so-called “head tax” equivalent to about $125 per full-time employee at more than 1,000 of the city’s largest businesses. Council Members Sally Bagshaw, Rob Johnson, Debora Juarez, Bruce Harrell, and Lorena González voted against the proposal; while Mike O’Brien, Lisa Herbold, Kirsten Harris-Talley, and Kshama Sawant voted in favor of it. Drafted by Councilmembers O’Brien and Harris-Talley, the proposal would have directed about $6 million in generated revenue toward increasing the number of 24-hour shelters and services for homeless people while they wait for housing to become available. About $18 million would have gone toward investment in more affordable housing units.
“I’m disappointed because we’ve been in this state of emergency for two years,” Councilmember O’Brien said as it became clear that the tax, which would have taken effect on January 1, 2019, wouldn’t pass. Some members of the public shouted “Shame on you!” as the Council voted to remove the tax from the proposed 2018 budget. In voting against the tax, several members cited a need to have a clearer tax proposal or suggested finding alternative sources of revenue to help alleviate the homelessness crisis.
Council President Bruce Harrell suggested borrowing about $8.8 million from a rainy day fund to address homelessness while the City Council finds a more sustainable head tax or alternative revenue sources to address the crisis.
Read more: http://www.seattleweekly.com/news/the-city-passes-up-opportunity-to-tax-big-businesses/