SEATTLE (AP) — High-income residents in Seattle would pay a new city income tax under a proposal being considered by the Seattle City Council Monday.
Under the proposed ordinance, wealthy residents would pay a 2.25 percent tax on income in excess of $250,000 for individuals and in excess of $500,000 for married couples who file taxes jointly.
The council’s finance committee voted to bump that rate by .25 percent on Wednesday and forwarded it to the full council for a vote.
Supporters say the tax would provide a progressive revenue stream to pay for crucial city needs such as affordable housing, transit, homeless and other services. They also want to test the legality of an income tax in Washington state.
Opponents say the tax is illegal and unconstitutional. They warn that the tax would be increased and expanded over time.
The city estimates the income tax will raise about $140 million a year.