Updated 'Tax Amazon' Plan Includes $200M For Coronavirus Relief

SEATTLE, WA — Seattle councilmembers Kshama Sawant and Tammy Morales have unveiled an expanded plan to tax Amazon and other big businesses, including an additional $200 million to help offset the deep economic impact of the new coronavirus outbreak in Washington.

The three new pieces of legislation would accelerate the timeline to implement the tax and increase the percentage collected from payrolls. Under the original legislative package, formally unveiled in early March, 825 of Seattle's largest employers would have paid an excise tax of 0.7 percent, to fund affordable housing construction and energy efficiency upgrades, beginning in January 2021.

The accelerated plan seeks a 1.3 percent tax on corporations with payrolls exceeding $7 million annually. According to Sawant's office, approximately 97 percent of businesses would be exempt from the tax, along with all non-profits, public employers and grocery stores.

"Working people are facing the twin crises of coronavirus and capitalism," Sawant said. "Even in this pandemic, the wealthiest corporations are getting bailed out, while many of them, like Amazon, are exploiting their workers by denying them basic protective equipment, paid leave, and hazard pay."

Citing skyrocketing unemployment claims, which have soared to unprecedented levels in Washington and across the nation, Councilmember Morales underlined the necessity of quick, decisive action to address the outbreak's economic fallout.

"Every day I receive dozens of emails and phone calls from district residents seeking help because they lost their small business, or their entire household lost their jobs," Morales said. "We know our existing resources are not enough, we must act swiftly to provide relief."

The new plan would provide four monthly $500 payments for up to 100,000 low-income households and individuals, with priority given to seniors, working people who have "become destitute," people experiencing homelessness, immigrants and refugees.

"We know that $500 a month will not cover rent fully, but it can help buy groceries or diapers or help cover health care costs," Morales said.

If passed, the new tax is projected to raise $500 million annually, beginning June 1, 2020. Payments would not be due until 2021 or 2022, and the $200 million in emergency spending for this year would initially be paid through an interfund loan.

The legislation is scheduled to be formally introduced to the Seattle City Council on Monday, April 6.

You can view the full text of the legislation here, or review a detailed summary here.