Seattle Tax on Wealthy Residents Clears Council Committee
SEATTLE (AP) — The Seattle City Council finance committee has approved a proposed income tax on high-income households.
The Seattle Times reports the council approved the tax Wednesday, with a full council vote expected July 10.
The measure would tax 2.25 percent of total annual income, above $250,000 for individuals and above $500,000 for married couples filing jointly.
When the tax was proposed last month, the rate was set at 2 percent. The finance committee increased it to 2.25 percent.
The city estimates the tax would raise $125 million per year. According to a City Hall analysis, it would cost from $10 million to $13 million to set up and $5 million to $6 million per year to administer and enforce.
Supporters say it would make Seattle's tax structure more fair and they want to test the legality of an income tax in Washington state.