Author: Klint Finley / Source: WIRED
The Seattle City Council voted 9-0 last month to approve an annual $275-per-employee tax on big employers like Amazon. The tax was expected to raise about $47 million a year for services for the homeless and construction of affordable housing. But Tuesday, less than a month after passing the tax, the council voted 7-2 to repeal it.
The victory for Amazon comes amid growing concern about the power and influence of big tech companies, and their responsibility for the spread of fake news, sloppy handling of user data, rising income inequality, and other ills.
But a look at this week’s headlines shows getting tough on tech is harder than many expected. The most tech-friendly candidate in San Francisco’s mayoral race appears to have won. The Federal Communications Commission’s net neutrality rules are no more, freeing broadband providers favor certain content over others, and to charge companies extra fees for “fast lane” access. And AT&T got the go-ahead to buy Time Warner, overcoming an federal antitrust challenge.Seattle’s corporate tax looked at first like an example of elected officials standing up to a tech giant. But the version that passed last month was a compromise. Councilmembers originally proposed a $500-per-employee tax that would have eventually transitioned into a payroll tax on companies making at least $20 million in revenue. In response, Amazon announced it was halting construction on a new office building and considering subleasing space in another instead of hiring more staff in Seattle.
Seattle Mayor Jenny Durkan negotiated a compromise, cutting the tax nearly in half. Amazon announced it would resume construction after the measure passed, but company spokesman Drew Herdener warned the company still wasn’t happy and suggested it might hire fewer people…
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