Comments on: Taxes http://www.brunoandtheprofessor.com/2008/04/taxes-2.php Bruno and the Professor is a progressive, liberal weekly talk radio podcast covering issues from Seattle, the United States, and the World Sat, 28 Jan 2012 01:48:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bruno http://www.brunoandtheprofessor.com/2008/04/taxes-2.php/comment-page-1#comment-8198 Bruno Tue, 15 Apr 2008 16:43:38 +0000 http://www.brunoandtheprofessor.com/2008/04/taxes-2.php#comment-8198 That's interesting. You could make the case that there's enough of a housing demand among high-income people to support an income tax within the city. But what you don't want is for Seattle to become Manhattan -- an island of super-wealth where no one else can live. If there were such a tax, it would have to be very progressive. Like it only kicks in above $75K, say. That’s interesting. You could make the case that there’s enough of a housing demand among high-income people to support an income tax within the city. But what you don’t want is for Seattle to become Manhattan — an island of super-wealth where no one else can live. If there were such a tax, it would have to be very progressive. Like it only kicks in above $75K, say.

]]> By: Damon http://www.brunoandtheprofessor.com/2008/04/taxes-2.php/comment-page-1#comment-8142 Damon Tue, 15 Apr 2008 04:18:11 +0000 http://www.brunoandtheprofessor.com/2008/04/taxes-2.php#comment-8142 Thanks for the link! I agree that a statewide income tax would be better and wondered whether a city income tax would be worthwhile (in the hypothetical world of my blog post). But I have my doubts about anyone running a successful initiative a statewide income tax, even if it's revenue neutral. Seattleites, on the other hand, could plausibly support an income tax, especially a modest one aimed at the upper end of the income scale. The hope would be that the targeted high-earners live in Seattle for the lifestyle and wouldn't be hopping over to Bellevue, etc. over a small increase in their tax burden. As for businesses moving, it'd depend on how things are structured. I know Philadelphia's wage tax is assessed on Philadelphia residents regardless of where they're working, and on anyone working within Philadelphia. It sems like this wouldn't affect a business's bottom line, but might affect its ability to compete with non-Philadelphia businesses for the non-Philadelphia workforce. I don't know much about the history of the city, but I'd guess some of the prime drivers behind people and jobs leaving the city were the collapse of heavy industry and white flight. The residential patterns there mirrored those of many neighboring cities. I'd hope that an income tax for Seattle would work out more like it does in New York City, where people pay it because they want to live in the city. But then, Seattle ain't New York, so maybe not. Thanks for the link! I agree that a statewide income tax would be better and wondered whether a city income tax would be worthwhile (in the hypothetical world of my blog post). But I have my doubts about anyone running a successful initiative a statewide income tax, even if it’s revenue neutral.

Seattleites, on the other hand, could plausibly support an income tax, especially a modest one aimed at the upper end of the income scale. The hope would be that the targeted high-earners live in Seattle for the lifestyle and wouldn’t be hopping over to Bellevue, etc. over a small increase in their tax burden.

As for businesses moving, it’d depend on how things are structured. I know Philadelphia’s wage tax is assessed on Philadelphia residents regardless of where they’re working, and on anyone working within Philadelphia. It sems like this wouldn’t affect a business’s bottom line, but might affect its ability to compete with non-Philadelphia businesses for the non-Philadelphia workforce. I don’t know much about the history of the city, but I’d guess some of the prime drivers behind people and jobs leaving the city were the collapse of heavy industry and white flight. The residential patterns there mirrored those of many neighboring cities.

I’d hope that an income tax for Seattle would work out more like it does in New York City, where people pay it because they want to live in the city. But then, Seattle ain’t New York, so maybe not.

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