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’
Jul 12, 2025 5:16 PM

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
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 15:4   Read Proverbs 15:4   A good tongue is healing to wounded consciences, by comforting them to sin-sick souls, by convincing them and it reconciles parties at variance.   Proverbs 15:4 In-Context   2 The tongue of the wise adorns knowledge, but the mouth of the fool gushes folly.   3 The eyes of the Lord are...
Verse of the Day
  1 John 4:20 In-Context   18 There is no fear in love. But perfect love drives out fear, because fear has to do with punishment. The one who fears is not made perfect in love.   19 We love because he first loved us.   20 Whoever claims to love God yet hates a brother or sister is a liar. For whoever does...
Verse of the Day
  Isaiah 61:7 In-Context   5 Strangers will shepherd your flocks foreigners will work your fields and vineyards.   6 And you will be called priests of the Lord, you will be named ministers of our God. You will feed on the wealth of nations, and in their riches you will boast.   7 Instead of your shame you will receive a double portion,...
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 22:4   Read Proverbs 22:4   Where the fear of God is, there will be humility. And much is to be enjoyed by it spiritual riches, and eternal life at last.   Proverbs 22:4 In-Context   2 Rich and poor have this in common: The Lord is the Maker of them all.   3 The prudent see danger...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 37:1-6   Read Psalm 37:1-6   When we look abroad we see the world full of evil-doers, that flourish and live in ease. So it was seen of old, therefore let us not marvel at the matter. We are tempted to fret at this, to think them the only happy people, and so we are...
Verse of the Day
  Commentary on Todays Verse   Complete Concise   Chapter Contents   Exhortations to obedience and faith. 1-6 To piety, and to improve afflictions. 7-12 To gain wisdom. 13-20 Guidance of Wisdom. 21-26 The wicked and the upright. 27-35   Commentary on Proverbs 3:1-6   Read Proverbs 3:1-6   In the way of believing obedience to God#39s commandments health and peace may commonly be enjoyed and though...
Verse of the Day
  1 Corinthians 3:18-20 In-Context   16 Don't you know that you yourselves are God's temple and that God's Spirit dwells in your midst?   17 If anyone destroys God's temple, God will destroy that person; for God's temple is sacred, and you together are that temple.   18 Do not deceive yourselves. If any of you think you are wise by the standards...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 90:12-17   Read Psalm 90:12-17   Those who would learn true wisdom, must pray for Divine instruction, must beg to be taught by the Holy Spirit and for comfort and joy in the returns of God#39s favour. They pray for the mercy of God, for they pretend not to plead any merit of their own....
Verse of the Day
  Hebrews 11:6 In-Context   4 By faith Abel brought God a better offering than Cain did. By faith he was commended as righteous, when God spoke well of his offerings. And by faith Abel still speaks, even though he is dead.   5 By faith Enoch was taken from this life, so that he did not experience death: He could not be...
Verse of the Day
  Galatians 2:20 In-Context   18 If I rebuild what I destroyed, then I really would be a lawbreaker.   19 For through the law I died to the law so that I might live for God.   20 I have been crucified with Christ and I no longer live, but Christ lives in me. The life I now live in the body, I...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved