A demonstrator in favor of the repeal of a tax on large companies such as Amazon and Starbucks that was intended to combat a growing homelessness crisis holds a sign that reads “No Tax on Jobs” as he waits for the start of a Seattle City Council meeting, Tuesday, June 12, 2018, at City Hall in Seattle. Members of the Council were expected to vote Tuesday on whether or not to repeal the tax. (AP Photo/Ted S. Warren)SEATTLE (AP) – Seattle leaders on Tuesday repealed a tax on large companies such as Amazon and Starbucks after a backlash from businesses, a stark reversal from a month ago when the City Council unanimously approved the effort to combat a growing homelessness crisis.
A divided crowd chanted, jeered and booed at the council meeting, drowning out the leaders as they cast a 7-2 vote. People shouted, “Stop the repeal,” as others unfurled a large red banner that read, “Tax Amazon.” An opposing group held “No tax on jobs” signs.
The vote showed Amazon’s ability to aggressively push back on government taxes, especially in its affluent hometown where it’s the largest employer with more than 45,000 workers and where some have criticized it for helping cultivate a widening income gap that is pricing lower-income employees out of housing.
The tax was proposed as a progressive revenue source aimed at tackling one of the nation’s highest homelessness numbers, a problem that hasn’t eased even as city spending grew.
Businesses and residents demanded more accountability on how Seattle funds homelessness and housing and said the city should take a regional approach to the problem. Many worried that Amazon and others would leave the city as the companies sharply criticized the tax.