[Ed. – Of course only for the rich. This is Seattle, one of the most liberal cities in the U.S. Who else are they going to soak?]
The Seattle City Council on Monday unanimously approved a plan to levy a 2.25 percent tax on the income of residents earning $250,000 or more annually. The Council estimates that the tax would bring in an additional $140 million each year.
The revenue would go toward the city’s housing affordability agenda and carbon reduction goals and supplant federal funds if they are cut. The revenue is also intended to alleviate the burden of Washington’s property and sales taxes, which are often called the most regressive in the country.
During the meeting on Monday, Councilmember Lorena Gonzalez introduced an amendment that allows some of the income tax revenue to go toward making business taxes less regressive. Despite opposition from Councilmember Kshama Sawant, the amendment passed five to three.
Sawant and Councilmember Lisa Herbold sponsored the income tax bill. Today is a crucial victory for them, but it isn’t the end of the road. The measure will almost certainly be challenged in court, as Washington state law says, “a county, city, or city-county shall not levy a tax on net income.”