{"id":5895,"date":"2020-07-12T02:12:16","date_gmt":"2020-07-12T02:12:16","guid":{"rendered":"https:\/\/byberry.com\/?p=5895"},"modified":"2024-01-31T10:42:54","modified_gmt":"2024-01-31T14:42:54","slug":"amazon-tax-how-it-works","status":"publish","type":"post","link":"https:\/\/trendingviews.com\/blog\/amazon-tax-how-it-works\/","title":{"rendered":"Amazon hit with new tax and here&#8217;s how it works"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Seattle&#8217;s new plan targets the tech community through taxes.\u00a0 <\/span><span data-preserver-spaces=\"true\">The region&#8217;s tech industry generated quite a fortune for those in the trade. However, it had drastic effects on the middle to low-income communities. The current situation only magnifies the problem. As thousands file for unemployment, tech workers can remotely work from home without disruption in their lives.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Plan<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The payroll tax will first assist families affected by the pandemic. Next, it will tackle homelessness by providing affordable houses\/shelters.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Income inequality will be addressed by targeting big tech companies such as Amazon. Seattle&#8217;s City Council voted 7-2 to adopt the new tax on Monday. Mayor Jenny Durkan&#8217;s signature is currently pending.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">How it Works\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to<\/span><a class=\"_e75a791d-denali-editor-page-rtfLink\" href=\"https:\/\/www.geekwire.com\/2020\/seattles-new-payroll-tax-amazon-big-businesses-will-work\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">\u00a0Geekwire<\/span><\/a><span data-preserver-spaces=\"true\">, the ordinance&#8217;s taxation has a tiered system that applies to companies with annual payrolls exceeding $7 million. Employers belonging to the first bracket will be taxed:\u00a0<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">0.7% of annual salaries between $150,000-$399,000<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">1.7% of annual salaries exceeding $400,000<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Annual payrolls exceeding more than $1 billion per year will be taxed:\u00a0<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">1.4% of annual salaries between $150,000-$399,000<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">2.4% of annual salaries exceeding $400,000<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The tax applies to employers, a percentage of the highest salaries will be taxed. The tax applies to businesses that pay Seattle-based companies. Their employees must work in Seattle, at least more than 50% of the time. The employees should also be making more than $150,000 per year to be subjected to the tax.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The tax also applies to remote workers. If the workers reside in Seattle but do not have work assigned from any city, they are subjected to the tax.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The establishments exempted from the tax are:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">\u00a0grocery stores<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">non-profit hospitals<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">insurance companies<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">motor fuel companies<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">\u00a0liquor stores<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The City Council estimated that the tax would generate more than $214 million per year.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The article also stated that the council would spend the money to invest in:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">\u00a0rental assistance programs<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">non-profit housing<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">homeless service providers\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">grocery vouchers<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Cash assistance will be provided to small businesses.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The city will borrow funds to address these things soon, and the money that will come from the tax will be used to fund all of the plans stated above.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seattle&#8217;s new plan targets the tech community through taxes.\u00a0 The region&#8217;s tech industry generated quite a fortune for those in the trade. However, it had drastic effects on the middle to low-income communities. The current situation only magnifies the problem. As thousands file for unemployment, tech workers can remotely work from home without disruption in &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Amazon hit with new tax and here&#8217;s how it works\" class=\"read-more button\" href=\"https:\/\/trendingviews.com\/blog\/amazon-tax-how-it-works\/#more-5895\" aria-label=\"Read more about Amazon hit with new tax and here&#8217;s how it works\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":5897,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/posts\/5895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/comments?post=5895"}],"version-history":[{"count":0,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/posts\/5895\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/media?parent=5895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/categories?post=5895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trendingviews.com\/blog\/wp-json\/wp\/v2\/tags?post=5895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}