Home
/
RELIGION & LIBERTY ONLINE
/
The planner’s delusion: The backward logic of Seattle’s ‘Amazon tax’
The planner’s delusion: The backward logic of Seattle’s ‘Amazon tax’
Oct 29, 2025 11:14 AM

As Americans continue to flock to large cities in search of opportunity and connection, many of those same cities are suffering from expensive housing costs, arbitrary price controls, onerous regulations, and cronyist governance—the sum of which is serving to diminishaccess to the pondand stunt opportunity among the disconnected.

In Seattle, Washington, for example, we see the typical cocktail of a progressive urbanist’s daydreams, mixing excessive land-use regulationswith a series of knee-jerk jolts in the minimum wage. Despite being home to some of the fastest panies, the city’s policies are beginning to take a toll on local businesses and workers. Meanwhile,homelessness is on the rise.

Far from recognizing the source of such woes, however, the City Council has sought a remedy in additional economic distortion, passing a “head tax” on the city’s highest grossing businesses, amounting to $275 a year per full-time employee (down from the originally proposed $500-per-head). For pany like Amazon, the tax will amount to an estimated $12.4 million per year.

The goal is simple: to make 585 or so businesses pay their “fair share” for the city’s housing dilemma by funding affordable housing and emergency services for the homeless. As Councilmember Mike O’Brien explained it, “We panies that are profitable and making billions of dollars every year to help with the folks that are being forced out of housing and ending up on the street.” Or consider the attitude of SEIU Healthcare 1199NW, a local union: “Seattle’s exploding homeless population is a symptom of our city’s extraordinary economic growth and astronomical home prices…The corporations who are profiting most — the top 3 percent — should rightfully pay a fair fee to address the problems they create.”

Whatever the needs of Seattle’s homeless population, this is a curious path indeed—blaming economic growthfor economic woes—which only goes to show the backwardness of the logic, the size of the blind spot, and the scale of the planner’s delusion.

Despite the professed aims of the city’s planning class, such policies will only serve diminish opportunity and affordability—further distorting prices and driving away producers, rather than correcting the actual follies that led to a shortage of affordable housing in the first place.

The ripple effects of taxing jobsaren’t just bad panies; they cut straight to Seattle’s workers, asmany are making it known.Further, as Richard Epstein observes, “Picking on one group of successful firms will likely reduce their presence or even drive them out of town, as with Amazon. And it will surely deter other successful firms ing in.” If you need evidence, just witness the recent migration from coastal centers to middle-metros in the Midwest.

Instead of driving a wedge between successful businesses and those in need, the City Council would do well to focus on the barriers to growth, rather than the engines behind it. If the activity at the bottom is healthy, one could easilyconclude the problem might be up top.

As Michael Hendrix argues in The Closing of the American City: A New Urban Agenda, a report from AEI’s Values and Capitalism project, the city’s with high economic growth and rising housing costs have plenty they could focus on without imposing more fees or tinkering with prices:

The extremely high cost of city living has an obvious cause and an obvious solution. The problem is one of simple economics: An increase in demand for a good will cause its price to rise until supply grows to meet it—unless it is constrained by some outside force. The outside force in this case is the bination of overly restrictive land- use regulation, byzantine permitting processes, and a rampant fear of development in one’s own backyard.

…Reformers must liberalize zoning restrictions—full stop. America should enjoy a less regulated, more market-oriented housing market. Fewer neighborhood types should be deemed illegal. Changes in supply should more readily keep up with changes in demand. In prosperous urban areas, freer markets will yield denser housing. They may not immediately lead to more economical housing, particularly in geographically constrained cities with globalized property markets, such as New York City. And we must keep in mind that a vibrant city hosts a broad array of housing types; the aim is not to pave paradise and put up a skyscraper. But the costs of inaction are higher than those of action. In Austin, rents stabilized after 10,000 new apartments were brought to market in 2014 and another 8,000 were added the year after. Building more units does in fact lower prices.

To spot such solutions, however, requires a full and accurate vision of where a city’s flourishing actually begins: not from top-down tinkering, but bottom-up creativity and exchange; not from planning, but from searching, and empowering the searchers, in turn.If cities like Seattle wish to cultivate a city with provision for all—not just the rich and connected—it should begin with fostering freedom and opportunity in the paths of connection, creativity, development, and investment.

That will require more than lessons in basic economics or a self-awareness of the risks of political power. It will demand a shift in basic attitude and moral perspective—one that focuses not on dismantling the powerful but on expanding opportunity for entrance.

Image: Ron Cogswell, Seattle, Washington (CC BY 2.0)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Hong Kong officials pressure journalism group to reveal list of members
The public pressure placed on the Hong Kong Journalists’ Association is the latest in Hong Kong’s crackdown on freedoms of press and speech. Since the city’s implementation of the National Security Law, or NSL, in June 2020, the media industry has been continually critiqued and crippled by the city’s leaders. Read More… On Sept. 15, Hong Kong’s Secretary of Security, Chris Tang, called for the Hong Kong Journalists’ Association, the city’s main press group, to reveal to the public who...
Freedom and free stuff: How prudence preserves liberty
Is it possible for a government to respect economic freedom while also playing a more or less significant role in providing certain material goods to its citizens? Prudence provides an answer. Read More… What is the relationship between freedom and government redistribution? Can the two coexist? Some believe there is a negative correlation between the two because free economies are often associated with less government intervention. Others might argue that freedom and significant state intervention go hand in hand, because...
‘Win-win denial’: The roots of zero-sum thinking
A new study shows that zero-sum thinking is pervasive across society, with roots in the ways we tend to think about our neighbors and the economy. Read More… One of the basic insights of economics is that trade is mutually beneficial, making both parties better off than they were before. It’s a proposition about human exchange that stretches back to Adam Smith’s foundational treatise, “The Wealth of Nations.” “Man has almost constant occasion for the help of his brethren, and...
Should morality be legislated?
An act’s immorality is not sufficient to justify prohibition or regulation through state coercion. A moral government aimed at mon good will recognize its basic purpose, scope, and limitations. Read More… Should governments legislate morality? It depends on how we define our terms. If “legislate morality” is simply defined as “making laws that are moral,” then it is obvious that we should legislate morality. But if “legislate morality” entails basing laws solely on an act’s morality or immorality, then we...
Sri Lanka’s organic farming mandate leads to food shortage, economic emergency
One needn’t take a position on organic farming to see the folly in Sri Lanka’s decision. This is a classic case of fatal conceits run amok — of lofty ideas and one-dimensional strategies that hold little regard for localized knowledge and plexity of the human person. Read More… In April, the Sri Lankan government banned the import and use of fertilizers and agrochemicals, including insecticides and herbicides, marking a significant step in their goal to e the world’s first country...
Freedom and Truth: Reflections on what we’ve learned from 9/11
Freedom, as indispensable as it is, is not sufficient for constructing the quality of society and culture appropriate to man, his dignity, and his capacity. It must be a freedom oriented to something beyond itself, as we have said so many times, oriented to truth: the truth of man’s origin, the truth of man’s nature, and the truth of man’s destiny. Read More… It feels strange to type that it’s been 20 years since 9/11. What happened 20 years ago...
9 Hong Kong activists sentenced to 10 months over participation in Tiananmen Square Massacre vigil
The sentences are the latest in the Chinese Communist Party’s, or CCP’s, relentless pursuit of absolute control, which simultaneously smothers any hint of dissent, including freedoms of speech and assembly. Read More… Nine Hong Kong pro-democracy activists were sentenced Sept. 15 to 10 months in prison for their participation in the annual vigil for memoration of the Tiananmen Square Massacre. Twelve defendants total pled guilty earlier this month to their involvement in the vigil memorates the 1989 Tiananmen Square Massacre,...
The impact of church attendance on child development and family life
Religious attendance is critical not only in the development and raising of children, but for society as a whole. Read More… Only 47% of Americans belong to a church of any faith. This matters, especially for families and children, as well as munities, as church attendance and religious adherence not only benefit family life, but also the development of children, as both church and a strong family life positively form children and help them e productive members of society. For...
Hong Kong journalists tell ABC they ‘fear for their lives’ because of communist Chinese power grab
“The NSL [is] the biggest damage to the whole industry,” former Apple Daily journalist Elvin Yu told ABC. “Nobody is safe.” Read More… Hong Kong pro-democracy news service Apple Daily shut its doors on June 24, but the ripple effects from the Chinese Communist Party’s attack on the free press continue to reverberate. Seven former Apple Daily employees have been charged under the city’s National Security Law, or NSL, which bans what the government deems to be acts of secession,...
With the ‘new Taliban’ now in power, can we expect anything different?
To fully understand the impact and future of Taliban, it is crucial to be cognizant of the varieties of Taliban and the power dynamics among their extremist rivals, such as al-Qaeda and ISK. Read More… The dramatic return of the Taliban to Kabul has consequences beyond the borders of Afghanistan. The Taliban are not the most popular group in Afghanistan but they certainly are the most feared, with enough force at their disposal to impose their dogmatic version of Islam...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved