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Analysis: the Seattle-Amazon tax fight is a lose-lose for everyone

Seattle and Amazon screwed the homeless.The war that pitted Seattle's City Council against Amazon, Starbucks a...

Posted: May 16, 2018 6:12 AM
Updated: May 16, 2018 6:12 AM

Seattle and Amazon screwed the homeless.

The war that pitted Seattle's City Council against Amazon, Starbucks and other businesses over homelessness has ended in a lose-lose-lose draw. It could go down as one of the biggest fiascos in the city's history as a leader of progressive policy, Seattle business and political leaders tell me.

The Council voted 9-to-0 to pass a compromise tax that will charge businesses $275 per-employee per year, instead of the $540 per employee figure initially proposed. Voter surveys show Seattle residents were overwhelmingly opposed to both proposals.

The city of Seattle lost because it failed to articulate a well-thought out strategy for dealing with homelessness; passed a watered-down bill that alienated the business community; and only won half as much revenue as it said it needed.

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Amazon and big business lost because they fought the Council with threats and criticism rather than seizing the opportunity to take the lead on an issue that it has demonstrated a commitment to elsewhere.

The nearly 12,000 homeless people living in King County lost because Seattle and Amazon got in a pissing match.

This could have been avoided, business and political leaders in Seattle tell me.

Seattle Mayor Jenny Durkan could have brought the City Council together with Amazon, Starbucks and other businesses to hash out a plan that made sense for both sides. Seattle and Amazon could have then trumpeted their success as a model for how liberal cities and tech companies plan to deal with the homeless epidemic they've helped to create.

Instead, Amazon now says it is questioning its future in Seattle.

"We remain very apprehensive about the future created by the council's hostile approach and rhetoric toward larger businesses, which forces us to question our growth here," Amazon VP Drew Herdener says.

"The city does not have a revenue problem - it has a spending efficiency problem," he says. "We are highly uncertain whether the city council's anti-business positions or its spending inefficiency will change for the better." Amazon declined to comment further.

Starbucks is also angry: "This city continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside," said Starbucks Senior Vice President John Kelley. "If they cannot provide a warm meal and safe bed to a five-year-old child, no one believes they will be able to make housing affordable or address opiate addiction."

Related: For Amazon HQ2 hopefuls, Seattle serves as a cautionary tale

The homelessness epidemic is the inconvenient truth of the tech boom that has fueled growth in Seattle, the Bay Area and Los Angeles, and its a problem for both city governments and the tech companies in their area.

City leaders and tech CEOs should own it. There is a massive opportunity to innovate on solving this issue. Doing it now would save lives (and generate good press). Avoiding it will yield massive problems down the line.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319511

Reported Deaths: 7368
CountyCasesDeaths
DeSoto22267267
Hinds20657421
Harrison18401317
Rankin13868282
Jackson13681248
Madison10239224
Lee10052176
Jones8458167
Forrest7824153
Lauderdale7257242
Lowndes6501150
Lamar634088
Lafayette6303121
Washington5419136
Bolivar4836133
Panola4665110
Oktibbeha466098
Pearl River4600147
Marshall4572105
Warren4440121
Pontotoc425073
Union415677
Monroe4155135
Neshoba4059179
Lincoln4008112
Hancock386487
Leflore3515125
Tate342386
Sunflower339391
Pike3368111
Alcorn324272
Scott319774
Yazoo314171
Adams305886
Itawamba305078
Copiah299666
Coahoma298484
Simpson298189
Tippah291868
Prentiss283661
Leake271774
Marion271280
Covington267283
Wayne264442
Grenada264087
George252051
Newton248663
Tishomingo231268
Winston229981
Jasper222148
Attala215073
Chickasaw210559
Holmes190374
Clay187754
Stone187433
Tallahatchie180041
Clarke178980
Calhoun174032
Yalobusha167840
Smith164034
Walthall135347
Greene131833
Lawrence131024
Montgomery128643
Noxubee128034
Perry126738
Amite126242
Carroll122330
Webster115032
Jefferson Davis108033
Tunica108027
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman81916
Choctaw79118
Wilkinson69432
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 548323

Reported Deaths: 11288
CountyCasesDeaths
Jefferson809531565
Mobile42066826
Madison35663525
Tuscaloosa26162458
Shelby25595254
Montgomery25081612
Baldwin21839313
Lee16265176
Calhoun14718325
Morgan14626285
Etowah14171363
Marshall12449230
Houston10764288
Elmore10295213
Limestone10182157
St. Clair10160251
Cullman9941201
Lauderdale9596249
DeKalb8967189
Talladega8458184
Walker7335280
Autauga7230113
Blount6944139
Jackson6922113
Colbert6414140
Coffee5627127
Dale4929114
Russell454941
Chilton4472116
Franklin431083
Covington4273122
Tallapoosa4136155
Escambia401780
Chambers3726124
Dallas3607156
Clarke352961
Marion3242106
Pike314078
Lawrence3129100
Winston283572
Bibb268464
Geneva257581
Marengo250665
Pickens236862
Barbour234659
Hale226878
Butler224071
Fayette218162
Henry193843
Cherokee187245
Randolph187044
Monroe179341
Washington170439
Macon162951
Clay160159
Crenshaw155657
Cleburne153244
Lamar146537
Lowndes142054
Wilcox127030
Bullock124242
Conecuh113430
Coosa111429
Perry108626
Sumter105732
Greene93534
Choctaw62025
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The relative lack of humidity has been a welcome change from the summertime stuffiness we’ve had lately. That lack of humidity will once again ensure that temperatures get down into the mid 60s for early morning Thursday. While Friday morning will remain comfortable as well, rain chances ratchet up as a tropical system approaches this weekend.
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