Seattle’s city council is planning a new local income tax on the rich.
Actually, I’m OK with such local tax schemes because they result in local impacts that can be avoided by moving. Voting with your feet has always been a proper method of expressing dissatisfaction with local government, and when cities like Seattle pass laws that punish the “rich” they might find that the “rich” decide to go elsewhere. Competition/personal freedom at it’s best…
Frankly, these tax schemes are just a scam. The money will benefit no one but the local government, and then only through political empire building and cronyism. Think about it: let’s say they take all the money (for now assume no government overhead) and give it to those who are suffering from a “housing affordability” crisis (one of the stated purposes for the tax revenue is to address the affordable housing crisis). What will be the result? More people with more money will be competing for the same properties. What do you think will happen to the cost of housing? You guessed it – prices will go UP, and you’ll have a new and expensive government bureaucracy to thank for it.
Key excerpts from articles on this topic:
“Socialist council member Kshama Sawant, the other tax bill co-sponsor, said the city was already anticipating legal challenges…” (Ed: emphasis mine)
“Voters in the state have rejected personal income tax-related measures at the statewide ballot several times over the past eight decades.” (Ed: note that the Seattle tax was implemented via the city council, rather than a public vote)
“…62% of more than 700 voters opposed it in a KING-5 TV flash poll after the tax was approved.”