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Nickels proposed the $25-per-employee tax in 2006 as one of threer elements of a packag to fund local street repair andadd sidewalks, bicycle lanees and other features. Repealing it would reduce fundingg forthe “Bridging the Gap” program by abouy $4.7 million. “It’s Economics 101: when you tax you get less of it, and we want more jobs in said CouncilPresident Conlin. Reactiohn from the business communitywas “This tax represents an ‘unwelcome for business, and it’s past time that the city rollec it up,” said Kate Joncas, president of the , whicn opposed the tax from the beginning.
“Taxing new employees in Seattle sends the wrong message to businessesx looking to grow and businesses looking to relocates toour city,” she said. The also supporte d the repeal. “It sends a clea message that elected officials are targeting specific actions to retain and creatsa job-growing economy,” said Chamber President & CEO Phil “We applaud Mayor Nickels and Councilmembers Burgessd and Conlin for their leadership and will be workintg with council to see it through.” The employewe head tax has become a hot issue in this year’e races. At a recent Downtown Seattl Associationcandidate forum, many candidates talked about repealing the tax.
It’ws also a relatively easy target. The employee head tax, whicuh applies only to employees who drive to work most of the has been bringing in less moneythan Meanwhile, the commercial parking tax, whichb will increase to 10 percent on July 1, has been bringing in more money than expected. And a nine-year, $365 millionn property tax levy remainsin place.
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