A Seattle City Council committee has approved a proposed income tax on high-income households. A full council vote is scheduled for July 10.
The Seattle City Council’s finance committee Wednesday approved a proposed income tax on high-income households, teeing up a full council vote July 10.
The tax would be 2.25 percent of total annual income, above $250,000 for individuals and above $500,000 for married couples filing jointly.
When the tax was proposed last month, the rate was set at 2 percent. The finance committee increased it to 2.25 percent last week.
The city estimates the tax would raise $125 million per year. According to a City Hall analysis, it would cost $10 million to $13 million to set up and $5 million to $6 million per year to administer and enforce.
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Proponents say it would make Seattle’s tax structure more fair and they want to test the legality of an income tax in Washington state. Neither the state nor any Washington cities currently collects an income tax.