One company that has continued to be in the news a lot over the past few years has been Amazon. This company has grown substantially over its 20-year run and looks as if it will continue to grow as a continues to make a wide range of strategic decisions that is fueling the continued development of the company. Over the past year, some of the biggest stories regarding Amazon has been its acquisition of Whole Foods as well as its announcement with a plan to open a second corporate headquarters. The company has recently been outspoke about new taxes that it is facing in its current headquarters of Seattle (https://www.thestreet.com/markets/amazon-starbucks-blast-seattle-corporate-tax-move-hq2-cities-keep-watchful-eye-14589308).
The city of Seattle Washington has had one of the most dynamic housing markets over the past few years. This has seen dramatic improvements in home prices for existing homeowners. While this has been very good for some people, it has made it nearly impossible for new people moving to the city to buy a new property. To help combat this, the city of Seattle is taking a number of different steps to raise taxes in an effort to help subsidized housing.
The city of Seattle has recently announced a new scaled-back corporate tax that is aimed at organizations that have a significant amount of Revenue. Overall, this will impact companies that have annual revenue of more than $20 million per year. The amount of the tax will end up affecting companies with the most amount employees. The current estimate is that it will cost a company about $275 per full-time employee. Overall, this will help to raise about $250 million for the city, which will be used to subsidize housing costs. Two of the most outspoken companies about this tax increase have been Amazon and Starbucks. Both of these organizations are headquartered in Seattle and have many employees that work in the city.
One of the main reasons why these organizations are against the tax increase is that it does not incentivize organization to hire new staff. If a company suddenly has to spend another $275 per year for staffing costs, they may consider other alternatives to get the same job done. In a time when many more jobs are becoming automated, this does not help out at all when hiring new employees. For Amazon, this could also influence the company to employ more corporate staff at the second headquarters when it opens.