Waging war on business during the COVID-19 crisis is ill advised
As the economy sputters on life support, Kshama Sawant’s latest Amazon Tax is the blunt instrument that just might kill it.
Anger and frustration may be understandable when it comes to the home grown global giant seemingly immune to big taxes. But sound bites shouted through a bull horn don’t tell the full story.
The latest Amazon tax hopes to raise $500 million, earmarked initially to help people impacted by the pandemic and later toward affordable housing. That’s a considerable sum toward urgent problems. It will nick the trillion dollar giant but also puts a disproportionate burden on industries struggling to survive the pandemic.
Amazon will endure and even thrive as the economy tries to escape the COVID-19 recession. But what about the other 800 businesses subject to the payroll tax? They’re employers in senior care, private medical clinics, newspapers and restaurant chains. Many of them have taken a hit and need help. Should they be considered collateral damage in crafting local legislation that’s broad enough to get the tax-shy giant to pay up?
Amazon’s success has altered Seattle for better (high employment) and worse (housing supply and prices). The City’s fortunes are inextricably linked to this employer of 53,000 in the metro area. After the 2018 head tax failed, the giant showed its displeasure by dropping its plan to occupy a flagship tower covering a full block in the center of downtown.
Whether this tax succeeds or fails, fallout will ensue. Have our leaders weighed the consequences? How much say will the public have? In 2018, the threat of a referendum caused the Council to reverse its decision on the tax. This time a local policy watcher claims the legislation drafted is “referendum proof.”
Deal making behind the scenes is likely in overdrive. Now we need our leaders to turn down the public vitriol. Let’s hear ideas to save Seattle that require corporate commitment but won’t sacrifice employers struggling to survive.
