Katie Wilson, 43, a left-leaning blogger, was elected as Seattle’s mayor last year. She seems amused by the fact that affluent residents and businesses are leaving the city.
At a recent talk at Seattle University, lecturer Joni Balter mentioned the city’s notable struggle to “add jobs in recent years,” pointing out that “Seattle has lost 25,000 jobs over four years, while projections suggest potential for adding around 37,000 jobs over five years.”
She also highlighted that Seattle’s downtown has experienced a 14% drop in retail jobs since 2010, with around 13,000 jobs vanishing last year alone—marking the highest job loss since the pandemic, as per the Downtown Seattle Association.
The report further revealed that the office vacancy rate downtown is currently at 25%, the highest since the pandemic began. Last year, it reached a staggering 32%, nearly doubling the previous record during the Great Recession. Additionally, the total taxable value of the top 20 properties in downtown Seattle plummeted from over $10 billion in 2021 to about $5.1 billion this year.
When asked about plans to “reverse this trend,” Wilson, alongside newly elected King County Executive Gurmey Zahirai, pointed to various factors behind the exit of jobs and businesses, including affordability issues for potential workers, as well as concerns over homelessness and security, compounded by the current tax structure.
While Wilson clearly aims to tackle issues related to affordability and public safety, he suggested that significant changes to the city’s tax system are unlikely to happen soon.
Wilson co-founded the Transit Riders Union in 2011 and has focused on related issues over the years. She recalled support for a proposed 9.9% tax on individuals or households earning over $1 million annually, arguing that claims about wealthy residents fleeing the state were “greatly exaggerated.”
In a somewhat reflective moment, Wilson waved goodbye to residents considering leaving Seattle, sharing a laugh with her colleagues before resuming the discussion.
She remarked, “In general, our tax system is still quite regressive, and we’re actively researching progressive options.” Notably, cities possess more taxing flexibility than counties, which might play a role in how local governments approach these issues.
Despite Wilson’s stance, high taxes in Seattle seem to be pushing jobs toward neighboring cities like Bellevue. John Scholes, president of the Downtown Seattle Association, indicated that Amazon’s recent decision to relocate thousands of employees out of Seattle can be attributed directly to the city’s considerable tax burden. Starbucks, while headquartered in Seattle, is also exploring options elsewhere.
The city has instituted various taxes, including a social housing tax that imposes a 5% charge on employee compensation exceeding $1 million, and a Jumpstart payroll tax targeting businesses with employees earning above $150,000 per year.
Scholes emphasized, “What we really need is for more businesses in Seattle to contribute to the tax base, as that’s essential for strengthening our fiscal situation.”
