This week, we're talking taxes—specifically, the new business and occupation (B&O) tax proposal that City Councilmember Alexis Mercedes Rinck and Mayor Bruce Harrell dropped, seemingly out of the blue, last week. The tax includes a big exemption that the business community has been seeking for a long time; however, above that threshold—$2 million in gross receipts—the tax will go up substantially.
Because B&O taxes are based on gross receipts, they hit high-grossing, low-margin businesses like restaurants and grocery stores hardest, which is one reason they aren't generally considered progressive. In fact, neither of the groups the city set up to come up with new progressive revenue sources recommended a higher B&O tax.
So what’s really behind this new proposal? The mayor's up for reelection, facing a progressive challenge from Katie Wilson. Seattle's in a budget hole. And supporters of the measure may be taking a gamble that the Chamber won't fight too hard against the tax, because it includes a big tax exemption that small- and medium-size businesses have been seeking for years.
With David still away gamboling in parts unnamed, Sandeep and Erica take up these questions and more on this week's episode of Seattle Nice.
Our editor is Quinn Waller.
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