Seattle, a big city in the US, has many homeless people who are finding it difficult to get appropriate shelter with rising inflation. Seattle has made a decision to impose Corporate Tax on big business giants like Starbucks and Amazon to end the housing crisis. Around 500 companies will fall under the new tax net.
Seattle hopes this move would bring in revenue of about $250 million so that houses that are easily affordable can be built, to benefit the homeless in the city.
Amazon and Starbucks, however, do not support this proposal and firmly stand against it. Amazon will be largely hit, as it provides the most employment which is around 45,000 employees. Questions are raised about the effective use of the amount previously spent towards the homeless population. Last year it is believed that $68 million has been spent on such economically poor people of the city.
The council, however, supports its tax imposition, saying that the corporate benefits from the tax system that prevails currently and such companies should come forward to solve the housing problems. The council has many supporters who feel that these businessmen should contribute towards the high rent of the lower income people.
The shares of Amazon which were trading in the pre-market session at $1,600, has not shown any change while shares of Starbucks have gone down marginally by 0.05% from its close on Monday. Amazon has seen a rise of 36.8% this year with a $780 billion market cap.
The retail giant Amazon feels that the council is extending a hostile attitude towards the large businesses operating in the city. It feels that it may have to lay off about 7,000 on this tax imposition.
Earlier a tax imposed as “head tax” was repealed during the recession period of 2006 on opposition to the tax, which is a point to be noted.