After passing a $15 minimum wage intended to help low-income workers in Seattle, economists at the University of Washington produced a rather extensive research report a few weeks ago highlighting how the legislation was actually doing the exact opposite as companies were simply choosing to automate menial tasks, move businesses out of Seattle in search of more attractive wages rates or simply cutting back on employees to offset increased labor costs (we covered the study here: Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 – UofW Study).
Unhappy with their failed experiment, the Seattle City Council decided to pursue a more direct form of income redistribution: a massive income tax on the rich.
As The Seattle Times points out, a measure passed by the Seattle City Council applies a 2.25% tax on total income above $250,000 for individuals and above $500,000 for married couples filing their taxes together. The city estimates the tax would raise about $140’million a year and cost $10’million to $13’million to set up, plus $5’million to $6’million per year to manage and enforce.
This post was published at Zero Hedge on Jul 11, 2017.