Under the tax, almost 600 businesses will have to pay $275 per employee, per year, until 2023. "Those are the jobs that will leave first due to this tax". The Seattle business community was almost universally opposed to the tax, according to Nelson.
Ms. Sawant doesn't like Amazon very much anyway: she has led ralliesagainst Amazon at the company's headquarters, with protesters carrying Sawant's trademark "Tax Amazon" signs. It accused the city of spending without accountability while ignoring that hundreds of children sleep outside. If they can not 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.
Sawant joined activist in rallying support for the policy, including using city resources to print fliers emblazoned with "Tax Amazon" to bill the head tax on corporations.More news: Is Acadia Realty Trust (AKR) Building Momentum?
"People are dying on the doorsteps of prosperity".
Seattle's City Council passed a new tax Monday.
"While a $275 head tax is perhaps small relative to the salary of a senior software engineer, it isn't for the entry-level jobs that an economically diverse city needs most". It is estimated that firms which generate revenues amounting to over $20 million per year would end up paying around $500 for every employee yearly. However the problem has only deteriorated with the number of homeless students attending public schools in the city tripling to close to 4,300 in the last school year. The total will increase if Amazon follows through on plans to expand its headcount in the city within the next few years. The tax will provide additional revenue.More news: Walmart has a new website for wealthy shoppers - here's what it's like
But as the big Seattle companies, which are among the biggest in the US and the world, are criticizing the legislation, supporters of the law, such as workers unions and church groups, said the tax would help the critical housing situation of the city, as the income gap increases and makes it more hard for the working class to pay rent. Companies argue that the measure is a tax on jobs and will stunt a booming local economy. Other cities have implemented similar taxes, but Seattle's is by far the highest in the nation. Amazon, with 45,000 workers, would take the biggest hit.
Amazon vice president and spokesman Drew Herdener said in a statement that the tax's passage "forces us to question our growth" in Seattle, where Amazon is planning a new 17-story office tower.
He said Seattle "does not have a revenue problem it has a spending efficiency problem".More news: Liam Payne Opens Up About Getting Married to Cheryl Cole!
"I am quite confident that as we move forward, we can continue to have the best city anywhere for people to do business", Mayor Jenny Durkan said at a press conference.