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’
Jan 2, 2026 12:46 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
King David on the Heart of Christian Stewardship
We live amid unprecedented economic prosperity, and with the promise of globalization and the continued expansion of opportunity and exchange, such prosperity is bound to grow. Yet if we’re to retain and share these blessings, such gifts need to be received and responded to with a heart of service, sacrifice, and obedience to God. “Man is not the owner,” write Lester DeKoster and Gerard Berghoef. “He is the overseer…Each of us is steward over those talents and those pounds allotted...
The Counterculture World Of Flannery O’Connor
Flannery O’Connor had a brilliant but short literary career. She died in 1964 at the age of 39 due plications from lupus, yet managed to leave behind a legacy of keen insight into the human condition of sin, in ways some considered repulsive. Her best known story, A Good Man is Hard to Find, is a morality tale of stiff adherence to “good.” O’Connor manages to turn upside-down the moral code of the seemingly “good” people in the story while...
Just Render Unto Caesar Already: The IRS and Frivolous Tax Arguments
In an attempt to trap Jesus, some Pharisees and Herodians asked him, “Is it lawful to pay taxes to Caesar, or not? Should we pay them, or should we not?” In response, Jesus said, “Why put me to the test? Bring me a denarius and let me look at it.” And they brought one. And he said to them, “Whose likeness and inscription is this?” They said to him, “Caesar’s.” Jesus said to them, “Render to Caesar the things that...
War on Women: Hypocrisy and Paternalism under the Guise of Equality
“The equal pay issue is rife with myths,” says Elise Hilton in this week’s Acton Commentary. “The myths have a long history in American politics.” With more than a dozen smiling women looking over his shoulder in the East Room of the White House, President Obama signed a proclamation in support of National Equal Pay Day on April 8. The president said he was working to prevent workplace discrimination and helping workers take control over negotiations regarding their pay. “My...
The Pickpocket Huntress of Barcelona’s Subways
While riding the subway in her hometown of Barcelona, Eliana Guerrero saw pickpockets steal a case of insulin from two elderly tourists. That crime motivated Guerrero to do something for help her city. “I try to solve things that affect me directly,” says Guerrero. “Pickpockets directly affect me because I adore Barcelona.” Since 2009, Guerrero has spend about three a hours a day patrolling Barcelona’s subways looking for pickpockets. “My mother always told me, ‘One swallow doesn’t make a summer....
Audio: Sirico on Pope Francis and President Obama
Acton Institute President and Cofounder Rev. Robert A. Sirico joined host Josh Tolley on The Josh Tolley Show on the GCN Radio Network to discuss the recent meeting at the Vatican between Pope Francis and US President Barack Obama. Sirico speaks about the discrepancy between the White House and Vatican recaps of the meeting and how that reflects the different purposes that the leaders had for the meeting as well as their different approach to dealing with social problems. You...
Woman Fights Back Against Occupational Licensing Laws in Mississippi
If you visited a florist would you immediately walk out if you found out it wasn’t licensed by the state? Would a florist shop still know how to perform their job without a state certificate? In most instances occupational licensing laws serve to mercial interests and not the consumer. Far too often these laws work directly against the entrepreneur. Melony Armstrong, who owns “Naturally Speaking,” fought back against the cumbersome and archaic cosmetology licensing laws that tried to prevent her...
The Fountainhead of Satanism
Over the past few years, Anton LaVey and his bookThe Satanic Biblehas grown increasingly popular, selling thousands of new copies. His impact has been especially pronounced in our nation’s capital. One U.S. senator has publicly confessed to being a fan of theThe Satanic Biblewhile another calls it his “foundation book.” On the other side of Congress, a representative speaks highly of LaVey and mends that his staffers read the book. A leading radio host called LaVey “brilliant” and quotations from...
It’s Tax Day: How Generous Do You Feel?
It’s tax day, and though I’m sure you’ve already begun your revelry, I suggest take a moment of silence to relish that warm, fuzzy feeling we get when pressured to pay up or head to the Big House. Indeed, with all of the euphemistic Circle-of-Protection talk bouncing around evangelicalism —reminding us of our “moral obligation” to treat political planners as economic masters and the “least of these” as political pawns —we should be jumping for joy at the opportunity. Nuclear...
University of Michigan Should Resist Racial Bullying
Over the past 20 years or so the University of Michigan has been repeatedly attacked for being “racist” because the university is doing exactly what Dr. Martin Luther King wanted. The university is treating prospective and current students according to their characters and not their color. This explains why the university rejected to admit Detroit native Brooke Kimbrough, an academically mediocre student. Kimbrough is appealing the decision, however, claiming that she should be accepted because the university needs “diversity.” What...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved