Seattle City Council approves income tax on the wealthy

http://www.seattletimes.com ^ | 07/10/2017 | Daniel Beekman

[BackRoads775]

The Seattle City Council unanimously approved a pioneering new income tax on wealthy residents Monday. A a legal challenge is widely anticipated.

The measure applies a 2.25 percent tax on total income above $250,000 for individuals and above $500,000 for married couples filing their taxes together.

The city has estimated the tax will raise about $125 million a year and cost $10 million to $13 million to set up, plus $5 million to $6 million per year to run and enforce.

The council’s finance committee cleared the tax last week, increasing the rate from 2 percent to 2.25 percent.

[copaliscrossing]

I live just south of Seattle so I get to see the idiocy of these people almost every day.

My first preference would be that the State Supreme Court find this unconstitutional and be done with it. But.... with the makeup of our WA State Supreme Court, I wouldn't be shocked if they find some way to twist the whole thing to make it constitutional (like calling penalty a tax...ha ha ha). Maybe they'll call the tax a penalty!

Short of that, maybe something like this will drive companies out of the Seattle city limits because truth be told, I actually think this whole urbanization is causing so many more problems that it solves and the negatives far outweigh the positives. Why is there such a traffic problem in and around Seattle? Because there are too many people trying to get to work in a very small area. Seattle is only exacerbating the problem by giving companies like Weyerhauser incentives to locate downtown thus bringing thousands more people to the downtown core during the 8-5 work day.

In my not so humble opinion, we need to do away with urbanization and concentrating business in such a small area. It causes way too many problems but it makes it easier for the libs to control things. Of course there are specific situations that warrant having some businesses in a certain location, like Port businesses and the like.

Just my overpriced two cents worth.

[from occupied ga]

Escape while you still can.

I keep telling my relative who lives there that.

[kearnyirish2]

NYC does have an income tax; those NJ people bemoaning the horrible train situation pay it as well (for working in NYC).

[kearnyirish2]

If the people determining the legality of this are paid by taxpayers, don’t count on it being shot down. It is the hand that feeds them.

[kearnyirish2]

NYC has had an income tax for years; I don’t know by what authority.

Back when the Greater Depression started (2007/2008), the mayor of NYC and the governor of NY wanted the government to allow banks to pay bonuses from the taxpayer bailout funds because they were so dependent on their respective taxes on those bonuses. The morality or legality never even entered the discussion; they needed the tax revenue, and optics be damned.

[kearnyirish2]

The Obamunists wanted to federalize their socialism to prevent that flight of productive people from areas overrun with others that wanted everything provided for them. The tax situation in NJ has caused exactly that (flight of wealthy people), and even more destructive, the flight of their companies that employed Jerseyans.

Now we are bleeding young Americans who see no opportunity here...

[shotgun]

Being a former city and county executive in Washington State, there is no provision in state law that gives cities and counties any authority to implement an income tax, otherwise all the cities and counties would have done this back in the 90’s when the state essentially started keeping 99% of all tax revenues for themselves.

[shotgun]

They can’t in Washington, and even if they could the State would be first in line to take their share right off the top. Any tax collected by a city is subject to the state taking a percentage right off the top.

[Mister Da]

Sounds like Seattle is about to experience a glut of high end homes for sale.

Let me be one of the first to predict that total tax revenues decrease in Seattle if this is implemented.

[Alas Babylon!]

A tax on income does NOT equal a tax on wealth.

Wealthy people do NOT have incomes. Their money is in funds, trusts and foundations. Of course they can use the money in these tax-free accounts to do as they please (think Bill Clinton getting a million dollars for one speech—goes to the Clinton Foundation—Clinton Foundation pays for all Bill’s needs, including the mortgage for his Chappaqua home, a fleet of vehicles and planes to cart his skinny ass around, and everything else he needs; no doubt the occasional fat bimbo...)

Nope, INCOME TAXES are applied against business people, owners of small businesses with lots of expenses, employers of small businesses...

Only hurts the city when they give up or move out.

[Hostage]

Thank you.

[Zarro]

Ha ha, thanks for the memory. I drove past that one day, in the quaint little town of “Freakmont”. Even the Seattle locals call it that. Well named.

[Edward.Fish]

Being a former city and county executive in Washington State, there is no provision in state law that gives cities and counties any authority to implement an income tax, otherwise all the cities and counties would have done this back in the 90’s when the state essentially started keeping 99% of all tax revenues for themselves.

On the other hand, looking at the Constitution there's nothing giving the federal government the authority to execute the War on Drugs, and indeed precedent would (via the 18th Amendment) dictate that an amendment would be needed to have such legitimate authority.

So I wouldn't bet on it.

[shotgun]

Not trying to argue with you point but that really is completely different conversation.

[BruceS]

You're telling me that a fast food worker in Dayton has to pay federal, state, AND municipal income tax?

Yes, Dayton has a 2.25% tax and the tax is on the gross wages. That fast food worker may not pay Federal or state taxes because of deductions and credits. But there are no deductions or credits on the city income taxes. I know a lady that works as a home health aid - I help her with her taxes each year. She usually doesn't owe much in Fed or state, but she has 2.5% tax on every dime she makes.

All cities that I know of don't tax income that is not earned (retirement, interest, dividends, etc.), but they sure tax earned income (including rent).