Hacker News new | ask | show | jobs
by BryantD 2833 days ago
Let's go back a little bit further in the history. In 2010, Washington took a shot at an income tax for individuals making over $200,000 a year. Bezos spent $100,000 to oppose that (along with a lot of other wealthy Washingtonians). Bezos also didn't support the Seattle income tax, although as far as I know he didn't spend money to oppose it.

The head tax was suboptimal and, yeah, stupid. Nobody would have proposed it if Seattle didn't have a regressive tax system. Compare us to Texas, another state with no income tax -- our property taxes are substantially lower. Seattle's infrastructure problems will continue because the city is underfunded to deal with them.

Anyhoo, I'm glad Bezos is spending this money on the homeless. I would recommend that he divert some of it to a deep dive into Seattle's problems. I think that committing to solve the problem in one city would yield insights that would be very valuable when he expands the program elsewhere.

2 comments

Oh yeah, just like Prop 1 in Olympia WA in 2016/2017.

Prop 1 is an initiative to "help educate the children of Olympia", using a little tax to help pay for college tuition. So noble!

Except: it proposes a levy on households of $200K or more (not constitutional in Washington), is an income tax, also not constitutional in Washington, requires the city of Olympia to fund the administration with no enforcement clauses, and multiple groups have already announced that they intend to sue the City if it's passed (which it will, because it's a 'think of the kids' measure), and the City knows it won't win but could not get the measure struck off so is already budgeting for constitutional lawyers. Hell, the City doesn't have the authority to see these people's tax statements, so it'd rely entirely on self-reporting. It's just a mess.

So you look a bit closer, and who is pushing this bill? A group of locals just concerned about local education?

No. A bunch of multi-millionaires from Seattle who want to use this as a proving ground for their challenges to state taxation law. Of the top ten donors, not one has ever lived in the County, let alone the City, nor does any of them have any children who attended school in either. (Olympia, like most state capitals, is far smaller than the largest city in the state), which makes you wonder why they're not pushing this in Seattle/King County - probably because they don't want their own taxes going to fund the defense of a proposition that's very specifically unconstitutional.

"Think of the kids" at its worst.

> Bezos also didn't support the Seattle income tax, although as far as I know he didn't spend money to oppose it.

He did; Amazon was among the primary opposition (if we're talking about the same tax):

https://www.nytimes.com/2018/06/12/technology/seattle-tax-am...

The nytimes article you linked is about the 2018 head tax. There were earlier initiatives:

- 2017 - Seattle approved an income tax for high incomes, but was removed six months later after a court dispute - https://www.mossadams.com/articles/2017/december/seattle-inc...

- earlier years - there have been Washington state income taxes proposed over the years, which have been usually shut down. googling shows the last might've been Senate Bill 6559 in 2016 - https://www.theolympian.com/news/politics-government/article...

The inability to pass a city income tax or a state income tax has been part of the arguments for why a head tax was proposed in 2018 - it's not ideal, but everything else in the past has been rejected.

Yanis Varoufakis (fmr greek minister of finance) gave a talk in Seattle a few months ago talking about the head tax: https://youtu.be/Z0M24CEEMFk?t=2m16s

Thank you for this video. The anecdotes about Obama and the German finance minister are excellent!