Seattle repeals ‘head tax’ after backlash from Amazon, Starbucks

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The Seattle City Council on Tuesday voted 7-2 to repeal a “head tax” on the city’s largest employers, granting a surprise victory to corporate giants such as Amazon and Starbucks just weeks after the council unanimously approved the measure.

The vote took place at a special meeting called by Council President Bruce Harrell and six other members of the nine-person Seattle City Council. Seattle Mayor Jenny Durkan also supported a repeal.

The council struggled to conduct the vote at the meeting’s conclusion as protestors chanted “stop the repeal,” drowning out councilmembers as they attempted to cast their ballot. Councilwoman Kshama Sawant, who cast one of two votes opposing the repeal, said the council was “bending to big business” and referred to Amazon CEO Jeff Bezos as an “enemy” of Seattle.

Originally passed on May 14, the measure required companies with annual revenue of $20 million or more to contribute $275 per employee annually toward efforts to combat widespread homelessness in Seattle. At the time, the city council said the “head tax” would raise about $50 million per year toward the development of affordable housing, homeless shelters and other outreach efforts.

“Today’s vote by the Seattle City Council to repeal the tax on job creation is the right decision for the region’s economic prosperity,” Amazon vice president and spokesman Drew Herdener said in a statement. “We are deeply committed to being part of the solution to end homelessness in Seattle and will continue to invest in local nonprofits like Mary’s Place and FareStart that are making a difference on this important issue.” – READ MORE

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