Decapitated: Seattle's 'Amazon' Head Tax Killed By Council

SEATTLE, WA - The Seattle City Council has axed a planned business head tax less than a month after unanimously approving it on Tuesday. Seven of Seattle's nine Council members voted for repeal, and Seattle Mayor Jenny Durkan is sure to sign the repeal legislation.

The repeal comes after political pressure from corporations like Amazon, Starbucks, and Microsoft co-founder Paul Allen's Vulcan. Durkan and the Council members who voted for repeal said a political fight over the head tax would distract from addressing homelessness, which is only getting worse.

Seattle still faces a homelessness crisis, but did not immediately provide a plan to come up with more revenue to address the crisis. Seattle declared a state of emergency over homelessness in 2015, and the head tax would've provided an additional $47 million annually for the problem. The city and King County need to build thousands of new units of affordable housing, a task that could cost as much as $400 million.

But that problem was no match for the money and political power brought down on Seattle elected officials by companies like Amazon, Starbucks, and Kroger. The companies pledged to spend thousands to repeal the tax through a ballot measure. According to estimates, the tax would cost Amazon about $20 million per year.

Amazon Vice President Drew Herdener - the company's chosen spokesman on the head tax - hailed the repeal calling it the "right decision for the region's economic prosperity."

Councilwoman Teresa Mosqueda, who did not vote to repeal, called out Amazon. The successfully negotiated a reduced head tax through Durkan, but then turned around and funded a repeal referendum. Mosqueda called it a "hollowed handshake and a broken promise."

The Council passed the tax on May 14. It would've charged businesses that earn more than $20 million annually $275 per employee per year.

During public comment, locals on both sides of the issued railed against the Council.

One man, speaking on behalf of the anti-homeless group Speak Out Seattle, claimed that 45,000 people signed an anti-head tax petition. Speak Out Seattle largely hijacked a meeting in Ballard hosted by Councilman Mike O'Brien before the May 14 vote.

"Are you hearing us now?" the man from Speak Out Seattle said to O'Brien, leaning down into the microphone.

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