I'm keenly aware of the push-back from pedestrian safety, bicycle and alternative-transportation advocates who strongly disagree with our initiative to repeal Seattle's so-called head tax on employees. Read my earlier posts here.
These advocates argue that the Employee Hours Tax (EHT) encourages use of alternative transportation modes and funds important bicycle and neighborhood transportation projects.
But, the facts support repealing this tax that creates a negative impression of the job-creation and business climate in Seattle. Seattle is the only city in the region to impost both a employee hours tax and a business and occupation tax, and our B & O tax is the highest. Check out this table: Download EHT-BO Tax Comparison 7-4-09. Our job-creation climate is very important to me and my colleagues. The signals we send, even if the direct out-of-pocket cost is small, are important. Impressions matter.
A better, and more direct, way to encourage alternative transportation (e.g., transit, carpooling, walking, cycling, etc.) is to raise on-street parking rates and commercial parking taxes; commuters would directly feel these cost increases, instead of their employers through the EHT, and may entertain alternatives.
At the end of the day, the Council identifies transportation project priorities and determines how funds will be allocated among those projects. There is no sentiment to cut back on pedestrian, bicycle or sidewalk projects. None. Adjustments to long-term financing, the reduction in construction costs, and higher than expected parking tax revenues will allow us to move forward with higher than anticipated funds for these important projects.