Category: Business

Seattle Nice Interviews Progressive Legislator-Turned-Chamber Leader Joe Nguyen

By Erica C. Barnett

Our guest on Seattle Nice this week isn’t a politician—he’s a former politician-turned-Seattle Chamber leader, and he says he sees no contradiction between his past as an pro-tax progressive legislator and his present job as the head of the city’s anti-tax business lobby group.

Joe Nguyen, the former state senator from West Seattle, defeated his opponent Shannon Braddock in 2019 by emphasizing his progressive bona fides, exemplified by a commitment to take no corporate contributions. Elected on that anti-corporate agenda, Nguyen went on to propose or support a payroll expense tax on big businesses, an excise fee on businesses that pay executives more than $1 million a year, and the statewide capital gains tax. “Tax the rich,” he wrote in the Stranger, which lauded him (pretty excessively, even at the time) as the “AOC of Washington state.”

 

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As head of the Chamber, Nguyen leads an institution historically opposed to business and capital gains taxes, and he talks like it, too—telling Seattle Nice that while he thinks “we need to have a more equitable tax structure in the United States, in Washington State, I worry that we’re putting all of our eggs in one basket” by taxing big tech businesses over and over. Already, Nguyen said, businesses have started to move jobs from Seattle to Bellevue because of the JumpStart tax, a payroll tax on Seattle’s biggest companies that the city now relies on to backfill its annual general fund shortfalls.

“Politically, it is very popular to say, ‘Tax the rich.’ Politically is very popular to say, ‘Go after the large companies.’ But the hard part that we’re going to put ourselves in is: If you want to tax the rich, you got to have rich people to tax,” Nguyen said.

“I was the architect and then sponsor of a lot of these policies,” Nguyen continued. “However, you’re concentrating a lot of that [taxation] into one specific area. And when you start to get some of this volatility, like you mentioned in your in your post [about social housing revenues] the other day, that’s the worry that I have.”

Listen to a preview of our conversation‚ in which David and I rant about the money pit that is the new downtown Convention Center, and subscribe to Seattle Nice to hear the full episode.

Chamber CEO Leaves, Mayor’s Office Contradicts SPD Explanation for Police Chief’s Bonus, Progressives Prevail in Burien, and More

1. Rachel Smith, the longtime CEO of the Seattle Metropolitan Chamber of Commerce, is moving on to become director of the Washington Roundtable, a statewide group that represents large employers.

According to a press release, Smith will leave the Chamber as of October 1; Gabriella Buono, the Chamber’s Chief Impact Officer, will be interim president and CEO until the Chamber’s board picks a permanent replacement.

Smith became head of the Chamber in January 2020, just as the group was reeling from a 2019 election in which the Chamber’s political action committee, Civic Alliance for a Sound Economy, spent unprecedented millions to defeat City Council incumbents. That flood of money appeared to spark a backlash against big-business spending, and the Chamber’s candidates mostly flopped. In 2021, the Chamber decided not to endorse any candidates—and, in that election, the more conservative candidates prevailed.

Under Smith’s nearly five years as its leader, the Chamber  has thrown its weight behind internal and public-facing campaigns to defeat social housing (the Chamber urged the council to delay the election and backed a ballot alternative that would have directed the city to spend existing funds on traditional affordable housing), as well as a number of efforts to squelch progressive tax proposals.

They’ve opposed the business and occupation tax reform proposal, which—if voters approve it—will pay for critical programs at risk for budget cuts; supported Mayor Bruce Harrell’s efforts to sweep homeless encampments, particularly downtown; and backed a proposed city charter amendment, “Compassion Seattle,” that would have required the city to keep all public spaces clear of encampments while imposing an unfunded mandate for homeless services on the city.

Under Smith, the Chamber also backed the Seattle Transportation Levy and connected the dots between the housing crisis and Seattle’s need to upzone, supporting efforts to build “middle housing” across the city.

2. As we reported earlier this week, Seattle Police Chief Shon Barnes received a $50,000 hiring bonus when he was hired, as did a new deputy chief and assistant chief he hired from Beloit, Wisconsin, and New Orleans, respectively. According to SPD, all three chiefs were eligible for the bonuses under legislation, passed in 2022 and amended two years later, that authorized $50,000 “lateral” hiring bonuses for police officers with existing job experience.

As we also reported, the sponsors of the legislation never intended for the bonuses to go to command staff, and the legislation itself says it applies only to police officers in the civil service, not management or executive-level staff.

SPD told us the city “offered as part of [Barnes’] compensation a ‘hiring incentive’ of $50,000 under the City’s 2024 legislation, which is related to the recruitment and retention of police officers at the understaffed Seattle Police Department. Asked about this, Mayor Bruce Harrell’s office gave a somewhat contradictory response.

“Chief Barnes is a nationally recognized leader in the field and the inclusion of the $50,000 was negotiated as part of his offer letter,” a spokesperson said, adding that the mayor was “not involved” in the other two $50,000 bonuses. This suggests that Barnes’ bonus was not actually a standard “lateral” incentive—as SPD has said—but was something the mayor’s office offered him on top of his $360,000 salary and other perks. The two contradictory explanations for Barnes’ hiring bonus leave the true origin of this unusual hiring bonus unclear.

Harrell’s office said Barnes’ “negotiated compensation makes his package consistent with the West Coast Seven (Long Beach, Portland, Sacramento, San Francisco, San Diego, San Jose, and Seattle), where in 2023 the median salary for police chiefs was $476,454 and the average salary was $424,712.” the spokesperson said.

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3. The Burien City Council, which in recent years has adopted a series of increasingly onerous laws targeting homeless people, could soon take a more progressive turn. Progressives (including incumbents Sarah Moore and Hugo Garcia, plus Sam Méndez, a progressive running to replace Jimmy Matta, who’s leaving the council) hold commanding leads in all three council races on the August primary ballot.

That bodes poorly for Stephanie Mora, the council’s most conservative member, who’s being challenged by progressive Rocco DeVito; their race wasn’t on the August ballot because they were the only two candidates. Mora, a staunch opponent of allowing homeless shelters or authorized encampments anywhere in Burien, has argued that the government has no role to play in addressing homelessness.

Kevin Schilling, the council member who currently serves as mayor of Burien, isn’t doing so well in his own race to defeat 33rd District state Rep. Edwin Obras, either. With the election certified, Obras has 48.2 percent of the vote to Schilling’s 34.6 percent. Schilling lost by the highest margin in the city where he’s mayor, trailing Obras by 15 points in Burien.

4. PubliCola obtained a copy of the permit for a controversial “Revive in ’25” rally in Gas Works Park. As PubliCola was first to report, the contentious event was relocated from Cal Anderson Park on Capitol Hill after negotiations between its anti-LGBTQ organizers and city officials, including City Councilmember Joy Hollingsworth and Mayor Harrell.

The permit reveals few details about the event, except that the group, led by Christian nationalist minister Sean Feucht, expects 350 people to attend—less than a similar “Mayday USA” rally at Cal Anderson earlier this year.

Although the permit goes from 9 am to 9 pm, the rally and concert is scheduled for 5 pm—leaving organizers plenty of time to hold a planned “Jesus March” in the streets around Cal Anderson before heading over to Fremont for the main event. Organizers have removed references to this march from their Facebook page, but have not publicly said they won’t be marching. According to city officials, Feucht’s group did not apply for a street use or special event permit for a march.

Seattle Nice: What’s Behind the Proposed New Business Tax?

By Erica C. Barnett

This week, we’re talking taxes—specifically, the new business and occupation (B&O) tax proposal that City Councilmember Alexis Mercedes Rinck and Mayor Bruce Harrell dropped, seemingly out of the blue, last week. The tax includes a big exemption that the business community has been seeking for a long time; however, above that threshold—$2 million in gross receipts—the tax will go up substantially.

Because B&O taxes are based on gross receipts, they hit high-grossing, low-margin businesses like restaurants and grocery stores hardest, often leading to higher prices—which is one reason they aren’t generally considered progressive. In fact, neither of the groups the city set up to come up with new progressive revenue sources recommended a higher B&O tax.

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On Monday, as I was posting the podcast, I received a poll testing messages for and against the tax measure. The Seattle Metro Chamber of Commerce is pushing the message that higher B&O taxes will drive up prices and drive larger businesses out of Seattle. “If the City continues to drive away large employers, it will create a domino effect hurting the small businesses this plan is supposed to help while also causing unemployment to rise, office vacancies to increase, and tax revenue to shrink,” one of the test messages claimed. The Chamber is also using some  dodgy math to claim that the city has more than $500 million just sitting around, up for grabs, so expect to hear that message when this thing goes to the ballot.

So what’s really behind the new proposal? The mayor’s up for reelection, facing a progressive challenge from Katie Wilson. Seattle’s facing a budget hole of $250 million even without federal cuts. And supporters of the tax measure may be gambling the Chamber won’t fight too hard against the tax, because it includes a big tax exemption that small- and medium-size businesses have been seeking for years.

With David still away gamboling in parts unnamed, Sandeep and Erica take up these questions and more on this week’s episode of Seattle Nice.

Head of Downtown Business Group Lobbied for Digital Kiosk Company; Education Levy Will Help Backfill City’s Budget Deficit

1. Under an agreement signed earlier this month, the Downtown Seattle Association will get to keep the revenues, estimated at a little over $1 million a year, from 30 digital ad kiosks that a company called IKE Smart City will soon install on downtown sidewalks. Because the agreement itself is private (the city will get no money from the deal, unless revenues exceed expectations), it’s hard to say whether the business group got a good deal or if IKE will walk away with the lion’s share of the profits.

What is clear is that the relationship between IKE and the Downtown Seattle Association is unusually close: The DSA’s board chair, Pacific Public Affairs principal Sung Yang, is a registered lobbyist for IKE. According to Yang’s filing with the city in April, he was hired by IKE, along with former deputy mayor Hyeok Kim, to lobby the city on “legislation related to Digital Kiosks.”

James Sido, the DSA’s communications director, told PubliCola that Yang “didn’t represent IKE in negotiation on DSA’s agreement with IKE. We conferred directly with Clay Collett, senior development director at Orange Barrel Media (the creators and operators of IKE kiosks).” However, it appears that Yang lobbied the city on IKE’s behalf while serving as board chair of the DSA. That puts Yang on two sides of the three-way deal, serving as a representative for the digital billboard company and the business group that will receive a share of the revenues from the billboards.

2. The city council voted to put a $1.3 billion Families, Education, Preschool, and Promise (FEPP) levy on the ballot earlier this month. If passes, the levy will increase next year from 36.5 cents per $1,000 of assessed home value to an average of 61 cents per $1,000 over the next six years, starting at 72 cents per $1,000 in 2026. That translates to a price tag of $656 a year for the median homeowner in Seattle, up from $248 under the previous, $619 million levy.

In a press release, Mayor Bruce Harrell described the levy as  “transformative,” saying it would  “make Seattle one of the best cities in the nation to start and raise a family, supporting our children from cradle, to classroom, into college and beyond toward successful careers.”

But the levy also includes significant spending—nearly $50 million a year—on programs the city was already paying for out of its general-fund budget, placing services the city has previously treated as fundamental at the mercy of voters. Generally speaking, levies are supposed to be—and are invariably sold as—additive; while the city budget pays for essential services, like fire, police, and a functioning road system, voters decide whether to tax themselves to pay for things like library expansions, sidewalks, and preschool programs.

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This year’s levy will shift funding for almost 30 programs that are currently being funded by the general fund, the JumpStart payroll tax, and the sweetened beverage tax over to the levy, amounting to a total of nearly $300 million over six years. Here are some of the existing programs for which funding will shift to the education levy to help Harrell and the council close a funding gap that’s currently estimated at $250 million over the next two years, along with their current funding sources (all numbers are six-year totals):

  • Increased Mental Health Staffing Supports (JumpStart): $42.1 million
  • Supporting Youth for Success grants, which provide preemployment skill building and mentorship (General Fund): $26 million
  • Youth and Young Adult Behavioral Health (General Fund): $12.7 million
  • Nurse Family Partnership (General Fund): $18.8 million
  • Online therapy for people between 13 and 24 (JumpStart): $24..7 million
  • Developmental Bridge, which provides services to young children with developmental delays (Sweetened Beverage Tax): $4 million
  • In-person mental health care for middle and high school students who aren’t served by school-based health centers (JumpStart): $16.7 million

A spokeswoman for Mayor Harrell, Callie Craighead, said Harrell alluded to the need to use levy dollars to fund existing programs in his levy announcement, when he said the levy would “align existing City investments in programs serving the three initiative goals through levy investments to ensure a stable funding source for years to come, maximize program coordination, and drive positive outcomes for Seattle youth.”

“The City’s latest revenue projections show an uncertain economic outlook and a reduction in multiple funding sources … that would impact important upstream investments for Seattle youth and families. Our levy renewal proposal ensures that these priorities have dedicated, consistent funding for the next six years,” Craighead said.

Already, she added, state budget reductions have forced the city’s Department of Education and Early Learning to use the current levy to fund preschool slots for the 2025 to 2026 school year. “This shows the cascading impact of reductions that we are looking to avoid by having stable funding through the levy.” It also suggests the high-level spending plan Harrell rolled out when he proposed the levy may not be what it ends up funding, and that the city could look to the levy to solve its budget problems in the future.

This Week on PubliCola: June 28, 2025

An IKE kiosk in Atlanta

State contracts go unpaid, the homelessness authority considers cuts, council approves digital sidewalk billboards, and more.

By Erica C. Barnett

Monday, June 23

Dozens of Digital Literacy Groups Funded Through a Statewide Grant Haven’t Been Paid Since January. The State Says It Isn’t to Blame.

We began the week with an in-depth feature about a statewide digital equity program, started during the pandemic to provide laptops and training in marginalized communities, that has not been able to pay its contractors for six months. The result: Small nonprofits, including some with just one or two employees, have been forced to shut down programs that help people exiting prison, non-English speakers, and folks living in isolated rural communities access the internet and learn digital skills.

Tuesday, June 24

Seattle Nice: Is It Time to Admit the King County Regional Homelessness Authority Is a Bust?

On this week’s podcast, we discussed the past, present, and future of the King County Regional Homelessness Authority, an agency established with the lofty goal of rebuilding the region’s homelessness system from the ground up. It hasn’t panned out that way.

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Wednesday, June 25

Towering Vertical Billboards Coming Soon to a Sidewalk Near You

The Seattle City Council approved a 30-year agreement to allow IKE Smart City, a Columbus, Ohio-based advertising company, to install 30 digital billboards, each 8’4” tall, on sidewalks throughout downtown Seattle, plus another 50 in other business districts across the city in the future. The Downtown Seattle Association, a private business group, will receive the profits from ad sales.

Thursday, June 26

Proposed Business Tax Increase Would Raise $90 Million a Year While Exempting Most Small Businesses

City Councilmember Alexis Mercedes Rinck and Mayor Bruce Harrell proposed a ballot measure that would increase the city’s business and occupation (B&O) tax rates while exempting gross revenues under $2 million, producing an estimated $90 million a year in new revenue to pay for housing stability, homeless services, food security, and small business sustainability.

Council Can’t Wait to Vote “Hell Yes” on Bills Cracking Down on Graffiti and “Nuisance” Bars and Clubs

The city council took up two bills designed to crack down on what Councilmember Bob Kettle calls the “permissive environment” in Seattle. One would empower the City Attorney to fine graffiti taggers and those who “encourage” them at a rate of $1,000 per tag. The second would give the city authority to penalize and shut down businesses because of crimes their patrons commit in “proximity” to their property, including misdemeanors like using drugs or drinking in public.

 

This Week on PubliCola: Tent City 4 Persists, SPD Launches Another Expensive Ad Campaign, Council Votes to Lower Its Own Ethics Standards, and More

Alexis Mercedes Rinck sits in council chambers while the rest of the council meets remotely from their offices on the other city of City Hall, where they retreated after a group of public commenters chanted and yelled at them.

By Erica C. Barnett

Hey PubliCola readers! I’ve been out of town, so posting this week was a little lighter than usual. Here’s what you may have missed:

Saturday, May 17

Tent City 4 To Move as Planned—For Now

Earlier this month, after a last-minute email complaint campaign, city officials suddenly decided that Tent City 4 could no longer move to a new location at the Lake City Community Center, setting off a chaotic week of negotiations. Eventually, the city allowed the self-managed community to move to the long-planned site, but only on a temporary basis until a more “appropriate” location can be found.

Thursday, May 22

David Meinert Joins Burien’s Lawsuit to Kill Voter-Approved Minimum Wage

Meinert, who once owned bars and clubs around Seattle, joined a lawsuit filed by the city of Burien to overturn a voter-approved minimum wage, arguing that it conflicts with a competing measure passed by the Burien City Council while the campaign for the voter initiative was going on. The two wages, Meinert argues, make it unclear how much he’s supposed to pay staff at his restaurant in Burien.

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SPD Hires Yet Another Recruiting Firm for New Ad Push as Part of Recent Spending Spree

Despite a budget shortfall and a temporary freeze on hiring for civilian positions, the Seattle Police Department is sinking up to $5.8 million into yet another recruitment ad campaign—this one by a Phoenix-based police recruitment marketing firm. Hiring is up at SPD after the city increased cops’ starting salaries to $103,000 last year.

Friday, May 23

Council Committee Approves Bill Lowering Council’s Ethical Standards

A city council committee voted to advance legislation that will revise the city’s ethics code to allow council members to vote in their own financial interest, eliminating a law that requires council members to recuse themselves when they have a clear financial conflict of interest. The higher ethical standard has persisted for more than 40 years, including 10 under district elections—undermining council members’ argument that district council members’ constituents would be newly and uniquely disenfranchised if their representatives couldn’t vote even when they have financial conflicts.