The Seattle City Council is facing fierce criticism for passing a tax Monday that targets large employers based on how many hours their employees work. Councilmembers M. Lorena González and Lisa Herbold convened a task force earlier this year intended to identify progressive sources of revenue to address a growing homelessness problem.

The city council then introduced legislation April 20 following more than four months of deliberation. But not everyone is behind the idea.

The proposal requires large companies to pay a $275 annual tax for each of their employees. The tax exempts businesses that make under $20 million annually and applies to about three percent of employers in the city.

But critics contest the proposal doesn’t do much to address the homelessness problem while hurting businesses. “The city of Seattle has been working to raise taxes any way they can for several years,” Freedom Foundation labor policy director Maxford Nelsen told InsideSources.

“Washington is one of the few states out there that doesn’t have an income tax, and that’s something that has bothered progressive activists and labor unions in Washington for years.” The Freedom Foundation is a free-market think tank based in Washington state. It has fought with the city council and local unions on numerous issues like a citywide income tax. Read more from…

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