Starbucks joins Amazon, lambasting Seattle's new head tax on top-grossing companies

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After that, councillors will have to vote again on whether or not to renew it. Durkan said she would sign the alternate plan but was still not behind the proposal the committee passed. The mayor's office did not immediately respond to request for comment. The initial proposal called for the tax to be $500 per employee, but the city's mayor had threatened to veto it, the Seattle Times reported. Mayor Durkan fell in the latter camp. Now, in five years, the fight in Seattle will begin again. Kshama Sawant was the sole non-sponsor.

A new tax targeting big businesses with large headcounts in Seattle is set to take effect - and Amazon isn't happy about it.

Sawant was the only member to initially oppose the compromise, but voted for it in the end.

The tax affects some 600 businesses.

In business-friendly Texas, University of North Texas Economist Dr. Michael Carroll says cities have to be careful not to lose the golden goose.

Without naming Sawant, Juarez offered a retort.

ADOLPH: As you know, I'm also a rank-and-file member of. "Sometimes you have to lead".

Amazon is the city's largest private employer and will pay the most under the new tax law.

Meanwhile, opponents say the head is a "misguided" plan and urge city leaders to consider a different approach to funding affordable housing and homeless services. Among other big companies expected to be hit by the tax are Starbucks and the Seattle Times.CNBC notes Denver and Chicago have imposed similar head taxes, though Chicago ended up repealing it. The reform, if it goes through, will be a watershed moment for the people of the city and will force its largest employer, Amazon, to find headquarters elsewhere. About $2 million would fund rental subsidies for people making between 0 to 30 percent of the area median income. Although the final tax is smaller than the $500 per-employee price tag originally under consideration, businesses like Starbucks and Amazon have already condemned the legislation. After pushing the income tax into law past year, a King County Superior Court judge ruled it was not authorized under state law. On the other hand, the council has also discouraged the plan of small head-tax that was primarily created to relieve Amazon from bestowing the town with 7,000 jobs.

"Will Amazon unpause Block 18 if $275 passes?"

"They're driving this economic engine", he said.

On Monday, Seattle passed a per-employee tax of $275 each year on businesses grossing more than $20 million annually. Council members rejected the tax during budget negotiations, with opposers saying it was too hastily written. The city does not have a revenue problem - it has a spending efficiency problem. And those words are resonating in Boston and other cities where the retail giant is growing fast, and considering a second headquarters.

A new McKinsey report estimated addressing current levels of homelessness would require between $360 million and $410 million, twice what the region is spending now. Check back for updates.