Not that I agree with the concept, but what is wrong with a simple income tax for wages earned within the city limits?
I have to pay City tax for the income I earn from my employer, even though I don’t live in said city.
The rate is 1/2% if you live in the city, 1/2% if you work in the city, and add the two to come up with 1% if you both live and work in the city.
That’s too tough for Seattle?
It’s an income tax. They will need to change the state constitution as step one.
it will increase. it always does. and with less resistance than the installation...
it was only 1 %... 2 % 4 % 8% 18 %
It’s an income tax. They will need to change the state constitution as step one.
Correction. If they are basically taxing the business on the money they SPEND that is sort of a sales tax. I can see several outcomes:
1. avoid giving people raises that cross a line into a tax level.
2. move their location outside the city limits
3. Encourage WFH outside the city limits. This is easy with the push for it caused by the virus.
This is an easy one for companies to avoid though I can see it hitting Amazon for a while. They need to create a site outside of Seattle as the “official” location for all WFH employees to hotel. And move their corporate out of Seattle like Boeing did decades ago.
It will become a town of under $150k employees.
Not that I agree with the concept, but what is wrong with a simple income tax for wages earned within the city limits?
Check out what the income tax rate was in the US in the beginning - and who they taxed.
Talk about your slippery slope. ;)
“...but what is wrong with a simple income tax for wages earned within the city limits...”
Everything.
Other than income taxes are constitutionally illegal in WA State, and we have been fighting proposals to try to cram one down our throats every 2 years for the last 40. Nothing I guess.