Thursday, July 13, 2017

Seattle Proposes Income Tax On Wealthy

News
Regardless of the motivation, either good intentions or fairness, raising taxes on the rich rarely increases revenues due the the reality of mobility. The rich, often meaning anyone that has more money than I, generally leave high tax cities or states in favor of low ones. Just ask Illinois! Seattle won't, because they're not really interested in understand principles behind income, taxation, and freedom of choice. They're only concerned about hypothetical arguments. Whether they sing songs or chant slogans to support the measure, freedom of choice means total revenues as a percentage of household income remains relatively constant over time. In other words, raise taxes on the rich, the rich leave.

Headline: Seattle is sticking it to the rich with a tax on the wealthy — in a state with no income tax

Inspired by a Trump administration threat to slash federal funding to cities, Seattle’s City Council struck back this week, unanimously imposing a rare city income tax on the rich.

The new tax measure requires individual city residents to pay a 2.25% tax on any income earned beyond $250,000 annually; couples who file jointly will pay the same rate on earnings beyond $500,000.

The high-earner tax, expected to be quickly challenged in court, would help support the city’s affordable housing, climate change, education and transit efforts at a time when federal tax cuts are expected to diminish funding for such programs.


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