Amazon, Starbucks Furious After Seattle Passes Controversial "Homeless Tax" | Zero Hedge
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# Amazon, Starbucks Furious After Seattle Passes Controversial "Homeless Tax"

Update: Amazon is not alone in its anger at Seattle's plans. Starbucks took a moment away from signaling its virtue and lashed out at the city's new tax. John Kelly, senior vice president, Global Public Affairs & Social Impact at Starbucks, said in a statement.

> "This City continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside.

> If they cannot provide a warm meal and safe bed to a five year-old child, no one believes they will be able to make housing affordable or address opiate addiction.

> This City pays more attention to the desires of the owners of illegally parked RVs than families seeking emergency shelter."

Ouch! How long before we hear a new round of boycott starbucks?

* * *

Despite Amazon's decision to halt construction on a new tower and threats to sublease space in another newly built downtown skyscraper, Seattle Mayor Jenny Durkan and the City Council have passed a controversial "homelessness tax" that will require the city's largest companies to pay an additional $300 a year per full time employee based in the city.

And while the law has been significantly watered down from the version introduced last month by the city council, Jeff Bezos still isn't happy about it.

To wit, the company said in an official statement that it's still "apprehensive" about expanding the number of employees it has based in the city, as Fortune reports.

> "We are disappointed by today’s City Council decision to introduce a tax on jobs," Amazon said in a statement. "While we have resumed construction planning for Block 18, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here."

Amazon has resumed construction on its 17-storey Block 18 tower, but we imagine the company now has even more incentive to shift employees to its planned HQ2, though, as CNNMoney warned in a recent piece, Amazon's strident reaction to the proposed tax in Seattle might give some of its suitor city's reason to reconsider (as foolish as that might seem from an economic development perspective).

The law will require employers who generate more than $20 million in gross revenues within the city limits to pay roughly 14 cents per man hour per employee every year - which comes out to roughly $275 per employee. Roughly half of the money collected by the tax will be paid by Amazon.

> So, at the end of April, the Seattle City Council released draft legislation that would force companies with revenues of over $20 million in the city to pay 26 cents for each hour worked by a Seattle-based employee, or roughly $540 per head per year. This "head tax" was to apply over 2019 and 2020, generating $86 million a year for social programs, before turning into a 0.7% payroll tax. (The annual proceeds of the tax were originally calculated at $75 million before the council revised its estimates.)

> However, with Mayor Jenny Durkan threatening to veto the tax because she was concerned about its impact on employment, the measure had to be watered down to pass.

> In the end, the version that passed - unanimously - will see large employers pay 14 cents per head per hour, or $275 per head per year. The tax will now generate $47 million a year, and it will run for five years, rather than turning into a payroll tax after a two-year run.

For what it's worth, Amazon says it has independently done more to ease homelessness than the city government, touting a corporate initiative to donate space to shelter 200 homeless people in one of Amazon's new buildings.

The company said it recently contributed $40 million to a city managed fund for affordable housing.

As Fortune points out, Amazon isn't the only company angry about the tax, which will impact more than 500 businesses. Starbucks, which hosts its headquarters in the city, slammed the city council, calling it incompetent and incapable of taking care of the city's homeless.

> Three-fifths of the money raised will go to building new, affordable housing, while the rest will fund emergency services for the homeless.

> Amazon wasn’t the only company left grumbling. Starbucks also responded, with public affairs chief John Kelley saying Seattle "continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside."

> "If they cannot provide a warm meal and safe bed to a five year-old child, no one believes they will be able to make housing affordable or address opiate addiction," Kelley said.

And while that statement should of course be taken with a grain of salt given that it's obviously in Starbuck's interest to do everything it can to pressure the city, the company's spokesman may have a point.

The roughly $50 million raised by the tax would go toward affordable housing initiatives that help the homeless find permanent shelter - while some of the money would go toward an emergency response program for people at risk of homelessness.

But the city has other options that might be more effective at alleviating the city's housing shortage, like changing restrictive zoning regulations.

Instead, by passing the tax, Seattle's mayor and city council have only provided further proof that the city is willing to do whatever it can to combat homelessness, short of actually building more homes.

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## Comments

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IridiumRebel Tue, 05/15/2018 - 13:22 Permalink

Leave Seattle...plenty of cities need the jobs and will be a better fit.

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???ö? IridiumRebel Tue, 05/15/2018 - 13:27 Permalink

Apple made more profit in the last quarter than Amazon made in its entire history.

In reply to Leave Seattle by IridiumRebel

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GlassHouse101 ???ö? Tue, 05/15/2018 - 13:28 Permalink

Silly Seattle. Amazon owns you, not the other way around.

In reply to Apple made more profit in… by ???ö?

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gmrpeabody GlassHouse101 Tue, 05/15/2018 - 13:33 Permalink

OK so, tell me again.., why they have so many homeless folks...

In reply to Silly Seattle. Amazon owns… by GlassHouse101

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nodhannum gmrpeabody Tue, 05/15/2018 - 13:37 Permalink

When one subsidizes an activity, one gets more of that activity.

In reply to OK so, tell me again.., why… by gmrpeabody

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evoila nodhannum Tue, 05/15/2018 - 13:38 Permalink

Blaming the wrong people. Where does all the tax dollars go? Uh, to service debt to service bs wars fought on behalf of bs people who issue bs money.

In reply to When one subsidizes an… by nodhannum

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Bubba Rum Das evoila Tue, 05/15/2018 - 13:44 Permalink

Fuck Seattle, they're a shithead city.

Fuck Amazon & Jeff Bezo's & their shithead .gov partner the CIA.

In reply to Blaming the wrong people… by evoila

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Buckaroo Banzai Bubba Rum Das Tue, 05/15/2018 - 13:46 Permalink

Ha ha, I love seeing liberals turning against each other.

In reply to Fuck Seattle, they're a… by Bubba Rum Das

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MarsInScorpio Buckaroo Banzai Tue, 05/15/2018 - 13:50 Permalink

Of course Bezos is apprehensive about it - he's a greedy psychotic sociopathic bastard with a God-complex unrivaled by any other living human.

I'm wondering when his virtue signaling is going to collapse under the weight of his reality. Making employees piss in a bottle because they can't get off the warehouse floor; putting wristbands on their arms to turn them into cyborgs; paying wages that border on wage-slavery (ask the WaPo newsroom about that . . . of course, the Malicious Seditious Media deserves every kick in the face they receive.) . . . I could go on, but everyone here knows exactly what I'm attributing to His Royal Insanity.

For those who think Soros is the Devil Incarnate, let me introduce you to Bezos.

In reply to Ha ha, I love seeing… by Buckaroo Banzai

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Joe Davola MarsInScorpio Tue, 05/15/2018 - 13:53 Permalink

Will each homeless person get a new shopping cart every year?

In reply to d by MarsInScorpio

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revolla Joe Davola Tue, 05/15/2018 - 13:54 Permalink

Sad! Really Sad!

There's a TREND in America favoring the hatred of the homeless by those in power.

In reply to Will each homeless person… by Joe Davola

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MarsInScorpio revolla Tue, 05/15/2018 - 13:59 Permalink

revolla:

So where does your programmer(s) latest poison link take the phising suckers to . . . ?

In reply to There's a TREND in America… by revolla

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Leakanthrophy MarsInScorpio Tue, 05/15/2018 - 14:14 Permalink

Another Nigger helping tax.

Let's face it, 90% of the American homeless are dark skinned and not because lack of hygiene or too much sunshine.

In reply to revolla: So where does your… by MarsInScorpio

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CatInTheHat Leakanthrophy Tue, 05/15/2018 - 14:43 Permalink

Total bullshit racist prick

I live here and most of the homeless here are WHITE FOLKS..

In reply to Nigger tax by Leakanthrophy

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espirit CatInTheHat Tue, 05/15/2018 - 15:04 Permalink

$300 tax per 'full time worker'.

Yep, we can fix that...

In reply to Total bullshit racist prick … by CatInTheHat

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bigkahuna Leakanthrophy Tue, 05/15/2018 - 14:50 Permalink

bullshit.

In reply to Nigger tax by Leakanthrophy

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Kidbuck revolla Tue, 05/15/2018 - 14:13 Permalink

Nothing stopping you from putting your money where your mouth is. By the way, I hate homelessness so much that I have worked hard all my life to avoid it, usually at jobs so shitty that the bums wouldn't even do them.

In reply to There's a TREND in America… by revolla

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CatInTheHat Kidbuck Tue, 05/15/2018 - 14:45 Permalink

95 million Americans unemployed. The highest sector of job growth is minimum wage/temp jobs thanks to Barry's giving of wealth to the 20%

The blame isn't the homeless. It's the wealthy...

In reply to Nothing stopping you from… by Kidbuck

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DEMIZEN revolla Tue, 05/15/2018 - 14:21 Permalink

they fear those who have nothing to lose.

In reply to There's a TREND in America… by revolla

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white horse revolla Tue, 05/15/2018 - 14:52 Permalink

why don't you move to China?

In reply to There's a TREND in America… by revolla

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Quantify Joe Davola Tue, 05/15/2018 - 14:19 Permalink

Taxes will fix it. They fix everything.....lol. climate changes...more taxes....poor people more taxes....homeless more taxes....want more muzzies more taxes, Russians, more taxes, guns more taxes....democrats more taxes....RINOs more taxes.

In reply to Will each homeless person… by Joe Davola

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Mr.BlingBling Joe Davola Tue, 05/15/2018 - 14:52 Permalink

Yes, a virtual shopping cart. But it can hold an unlimited amount of stuff!

In reply to Will each homeless person… by Joe Davola

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Pigeon Buckaroo Banzai Tue, 05/15/2018 - 14:35 Permalink

Yes. They're always so fucking surprised when the Nazis they courted all these years finally load *them* into the cattle cars.

In reply to Ha ha, I love seeing… by Buckaroo Banzai

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Redhotfill Buckaroo Banzai Tue, 05/15/2018 - 14:36 Permalink

But, but muh cronies why u tax us?

In reply to Ha ha, I love seeing… by Buckaroo Banzai

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adampeart Bubba Rum Das Tue, 05/15/2018 - 13:53 Permalink

It’s not just Amazon getting nailed with this tax. Supermarkets with 1% profit margins are too. Then they’ll bitch when there’s nowhere for the po’ to buy groceries.

In reply to Fuck Seattle, they're a… by Bubba Rum Das

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Kidbuck adampeart Tue, 05/15/2018 - 14:16 Permalink

Businesses don't pay taxes they simply collect the tax from their customers and pass it on to the government.

In reply to It’s not just Amazon getting… by adampeart

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FreeMoney Bubba Rum Das Tue, 05/15/2018 - 14:01 Permalink

At the same time that the Seattle City council was crying about how to help the homeless maybe 10years ago, they spent $7 million remodeling an outdoor fountain at the space needle.

Today, they are spending almost a billion digging a tunnel under the waterfront so they can demolish a 2 story bridge ( Alaskan way viaduct ) that runs between the harbor and the city. This is so they can reclaim the surface area and lease it out for more huge office buildings and condo towers.

The city only cares about homeless people to the extent that they add more union services government jobs with huge pensions and permanent liberal democrat votes.

The homeless are pawns.

In reply to Fuck Seattle, they're a… by Bubba Rum Das

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CatInTheHat FreeMoney Tue, 05/15/2018 - 14:48 Permalink

Just as it is down south from Seattle on the left neoliberal coast, neoliberal policies are what's killing the working class and the low income poverty stricken.

Gentrification via wealthy white neoliberal Cali invasion....

In reply to At the same time that the… by FreeMoney

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rockstone evoila Tue, 05/15/2018 - 13:47 Permalink

Seattle is at war???? With who, Yakima?

In reply to Blaming the wrong people… by evoila

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Dr. Acula rockstone Tue, 05/15/2018 - 14:16 Permalink

Iran

In reply to Seattle is at war???? With… by rockstone

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Redhotfill rockstone Tue, 05/15/2018 - 14:40 Permalink

TAXPAYERS, WHITE PEOPLE WITH JOBS WHO PAY TAXES, WHITE PEOPLE IN GENERAL, ANYONE WHO IS NORMAL AND NOT SELF LOATHING. BASICALLY non minorities, and assimilated Americans.

In reply to Seattle is at war???? With… by rockstone

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RedBaron616 evoila Tue, 05/15/2018 - 13:53 Permalink

So I guess it is better to keep the money here to subsidize the lazy. This is the difference between the two parties. One wastes money building a war machine and the other wastes money by subsidizing those who blame society for all their problems.

In reply to Blaming the wrong people… by evoila

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ZENDOG RedBaron616 Tue, 05/15/2018 - 14:25 Permalink

How much is spent on city/government wages and benefits? How much Pension do the idiots in gov get.

The only solution for an business able.....move out and fuckem.

In reply to So I guess it is better to… by RedBaron616

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CatInTheHat RedBaron616 Tue, 05/15/2018 - 14:51 Permalink

The lazy via the one percent central banking Zionist criminal cabal. America was stolen long ago.

The ignorant and stupid always lay blame at the consequence of one percent GREED AND PSYCHOPATHY, playing right into the hands of those who enslaved all...

In reply to So I guess it is better to… by RedBaron616

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HuskerGirl evoila Tue, 05/15/2018 - 14:27 Permalink

I would love to see the line item in Seattle's budget that goes to servicing the debt on the wars they've waged.

Do you have that figure?

Oh yeah, it's $0.00

In reply to Blaming the wrong people… by evoila

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pound the vix evoila Tue, 05/15/2018 - 14:34 Permalink

Nice try, but how does Seattle pay for a war? Excessive Pensions yes

In reply to Blaming the wrong people… by evoila

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Kurpak nodhannum Tue, 05/15/2018 - 13:42 Permalink

Exactomundo. This is like ringing the dinner bell, come and get it dirt kids!

In reply to When one subsidizes an… by nodhannum

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DinduNuffin Kurpak Tue, 05/15/2018 - 13:45 Permalink

the money wont be going to the homeless ... it goes to the administrators of the homeless

In reply to Exactomundo. This is like… by Kurpak

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rockstone DinduNuffin Tue, 05/15/2018 - 13:49 Permalink

But first, it has to go through the general fund. You know....for like....... ‘accounting purposes’.

In reply to the money wont be going to… by DinduNuffin

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DinduNuffin rockstone Tue, 05/15/2018 - 13:51 Permalink

that's how they launder their cut

In reply to But first, it has to go… by rockstone

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adampeart DinduNuffin Tue, 05/15/2018 - 13:53 Permalink

Bingo!

In reply to the money wont be going to… by DinduNuffin

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DEMIZEN DinduNuffin Tue, 05/15/2018 - 14:25 Permalink

this is the only reason why i support negative taxes

In reply to the money wont be going to… by DinduNuffin

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css1971 nodhannum Tue, 05/15/2018 - 13:58 Permalink

Subsidise housing production.

In reply to When one subsidizes an… by nodhannum

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adampeart nodhannum Tue, 05/15/2018 - 14:01 Permalink

Just wait, their next big idea is to set up taxpayer funded heroin injection sites(that ironically will be illegal to smoke cigarettes in.) Junkies, come one come all! Free smack and a cozy bed to pass out in with your own personal nurse at your bedside!

In reply to When one subsidizes an… by nodhannum

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curly adampeart Tue, 05/15/2018 - 14:51 Permalink

No need to wait. It's already teed up in King county.

That fine idea is a boon to MS13 and other gangs whose biz model includes heroin trafficking. And human trafficking, murder, extortion, and other unintended consequences. Seattle and King County government have gone full retard.

If it didn't rain so much, Seattle would be as bad as SFO and San Diego w/all the human poo and pee, and discarded needles, on the sidewalks and streets. Make sure you get a full course of hepatitis shots before visiting the Emerald City.

Even the Birkenstock-wearing aging hippies in Ballard are complaining about the homeless camps that Seattle makes available for the bums, and child molesters, and drug abusers.

In reply to Just wait, their next big… by adampeart

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Joe Davola gmrpeabody Tue, 05/15/2018 - 13:37 Permalink

The tax will now generate $47 million a year, and it will run for five years...

5 years, yeah right - and I'm gonna go out on a limb and state that only a teeny-tiny percentage of that will actually go toward "helping the homeless".

In reply to OK so, tell me again.., why… by gmrpeabody

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Yellow_Snow Joe Davola Tue, 05/15/2018 - 13:47 Permalink

Right, and in 5 years, that $300 morphs into $1000...

In reply to The tax will now generate … by Joe Davola

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TuPhat Yellow_Snow Tue, 05/15/2018 - 14:16 Permalink

Helping the homeless is not what the tax is really for. Besides who would want to help a bunch of drug addict alkies that roam the neighborhood stealing anything they can carry to the pawn shop. Even if they have to pry it loose or break in to get it. I used to live in what used to be a quiet relatively crime free neighborhood until the church near me began sheltering homeless people. Everyone in the neighborhood has now had their car broken into and lots of stuff missing. A homeless shelter is a den of thieves.

In reply to Right, and in 5 years, that … by Yellow_Snow

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Able Ape TuPhat Tue, 05/15/2018 - 14:28 Permalink

I volunteer at a homeless shelter in Atlanta from November until May that houses about 120 homeless men. Each person has to go through a vetting process and there is a very strict policy on alcohol and drugs. Mess up and you're out on the streets. Every day they get a hot meal, a place to sleep and a bag breakfast and lunch when they leave in the morning. If you don't vet the people in the shelter and are just opening it up - there will BE problems...

In reply to Helping the homeless is not… by TuPhat

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ZENDOG Able Ape Tue, 05/15/2018 - 14:43 Permalink

Why are they not working? Why are they not in school? Why are they not doing community service?

Why help those who only look for a handout?

Keep feeding the stray dog.....it's brings more the next time.

In reply to I volunteer at a homeless… by Able Ape

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