SEATTLE (AP) - The Latest on the debate over an income tax in Seattle (all times local):
3:25 p.m.
Seattle’s wealthiest would be the only Washington state residents to pay an income tax under legislation approved by the City Council.
The City Council on Monday unanimously voted to impose a 2.25 percent tax on the city’s highest earners. Personal income in excess of $250,000 for individuals and in excess of $500,000 for married couples would be taxed.
The measure is certain to face a court challenge from opponents who call the tax proposal illegal, unconstitutional and a waste of taxpayer money. A state law passed in 1984 prohibits a county, city, or city-county from levying a tax on net income.
Supporters say the city’s economic growth and prosperity has created significant wealth and opportunity, but has also exacerbated the affordable housing crisis that has put a strain on those in lower income brackets.
They also see the Seattle tax as a step toward building political momentum for the state and its other cities and towns to enact progressive tax systems.
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6:20 a.m.
High-income residents in Seattle would pay a new city income tax under a proposal being considered by the Seattle City Council Monday.
Under the proposed ordinance, wealthy residents would pay a 2.25 percent tax on income in excess of $250,000 for individuals and in excess of $500,000 for married couples who file taxes jointly.
The council’s finance committee voted to bump that rate by .25 percent on Wednesday and forwarded it to the full council for a vote.
Supporters say the tax would provide a progressive revenue stream to pay for crucial city needs such as affordable housing, transit, homeless and other services. They also want to test the legality of an income tax in Washington state.
Opponents say the tax is illegal and unconstitutional. They warn that the tax would be increased and expanded over time.
The city estimates the income tax will raise about $140 million a year.
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