Tag: taxes

Olympia Wrapup: Democratic Majority Falls Short on Core Democratic Agenda

Despite Democratic control in both houses, Washington state’s tax code remains deeply inequitable.

By Leo Brine

Last Thursday marked the end of the 2022 legislative session. Lawmakers only had 60 days to pass legislation, write and pass two supplemental budgets, and pass a transportation spending package. At the outset of the session, Democrats, who have a 57-seat majority in the house and a 29-seat majority in the senate, said they wanted to pass bills to help with housing affordability, homelessness, environmental sustainability, and the economy.

When it comes to housing, Rep. Nicole Macri (D-43, Seattle) told PubliCola, “it was not a great year in terms of policy.” Macri pointed out that Democrats killed Rep. Jessica Bateman’s (D-22, Olympia) bill to allow denser housing statewide (HB 1782) and Rep. Sharon Shewmake’s (D-42, Bellingham) accessory dwelling unit (ADU) bill (HB 1660), both of which could have helped the state increase its housing stock. Bateman’s bill would have required all Washington cities to include denser housing options, like fourplexes and courtyard apartments, in neighborhoods zoned for single-family housing, while Shewmake’s would have permitted mother-in-law apartments and backyard cottages in all types of residential neighborhoods.

When it comes to housing, Rep. Nicole Macri (D-43, Seattle) said “it was not a great year in terms of policy.”

The legislature also killed Rep. Strom Peterson’s (D-21, Lynnwood) tenant protections bill (HB 1904), failing to vote on it by the first legislative deadline.  Michele Thomas from the Washington Low Income Housing Alliance said it was “one of the biggest losses of the session,” adding, “Democrats in the House shouldn’t have been afraid to vote on that bill.” The bill would have required landlords to give tenants six months’ notice before increasing rent; capped fees for late rent payments at $75; and provided tenants who could not afford a rent increase assistance moving somewhere they could afford. Thomas said the bill was tame and didn’t propose any kind of rent control, typically a third rail for legislators.

Democrats did manage to pass some homelessness bills that will provide temporary help to people living on the streets. The house and senate passed Rep. Frank Chopp’s (D-43, Seattle) bill that attempts to connect people under the state’s Apple Health (Medicaid) program with permanent supportive housing (HB 1866). Although the bill initially passed without funding, Democrats secured $60 million for the program in the capital budget. Macri saw the provision as a necessary upgrade. “Being on the budget team, I tried to focus on making sure we had strong investments because we didn’t have the strong policy I wanted to see pass,” she said.

To respond to the ongoing climate crisis, which is only getting worse, Democrats used their transportation package to try and reduce the state’s overall emissions by investing in electrified ferries, expanded transit services and better bike and pedestrian infrastructure.

Climate Solutions Washington Director Kelly Hall said she was pleased with the investments Democrats made with the transportation package and hopes they will allocate more of the funding from the transportation package toward electrifying heavy-duty machinery, like long-haul trucks and construction vehicles, between now and the 2023 legislative session.

While Hall supports the transportation package, she said the legislature failed to pass bills that would reduce emissions from the state’s gas-heated buildings and from other common polluters people don’t often think of. Hall pointed out Rep. Macri’s bill (HB 1918) would have exempted the purchase of energy efficient lawn equipment from the state’s sales tax and encouraged more people to ditch their gas-powered leaf blowers and lawnmowers for zero-emission models. Gas-powered lawn tools “emit a lot of toxic air pollution right in our communities,” Hall said. Continue reading “Olympia Wrapup: Democratic Majority Falls Short on Core Democratic Agenda”

Olympia Fizz: House Committee Passes Wealth Tax, House and Senate Take Action on Tenant Rights and Funding

1. After nearly two months of inaction, the House Finance committee passed the progressive wealth tax (HB 1406) out of committee Wednesday morning. The bill made it out of committee with no amendments, despite Republican efforts.

The wealth tax is arguably the most progressive piece of tax reform legislation this session; the House is taking the lead, while the Senate took the lead on the capital gains tax.

The wealth tax legislation would require anyone with more than $1 billion in intangible financial assets, such as stocks, bonds, or cash, to pay a one percent tax on their worldwide cumulative wealth. The Department of Revenue estimates the tax will affect 100 Washington state taxpayers and generate $5 billion per biennium.

Finance committee chair Rep. Noel Frame (D-36, Seattle) urged her colleagues to vote yes on the bill so the state could begin rebalancing Washington’s tax system, which, according to the progressive Institute on Taxation and Economic Policy, forces the lowest income Washingtonians to spend 18 percent of their income on taxes while the very wealthiest spend just 3 percent of their income on taxes.

“The Washington state wealth tax would take a giant step forward in trying to right that wrong by asking the wealthiest Washingtonians, including some of the wealthiest people in the world, to pay their fair share,” Rep. Frame said.

Members of the finance committee passed the bill 9-7 with Democratic senators April Berg (D-44, Mill Creek) and Larry Springer (D-45, Kirkland) along with all Republican committee members, voting no. PubliCola has reached out to both Berg and Springer for comment.

Patinkin Research Strategies found that 58 percent of Washingtonians support the tax and just 32 percent are opposed. (The pollster gets a B/C rating from 538.)

According to Frame, the legislature will direct revenue from the wealth tax into a dedicated Tax Justice and Equity fund, rather than into the state’s general fund as the bill originally specified. Legislators will use the Tax Justice and Equity fund to support an anti-displacement property tax exemption (HB 1494) that the finance committee also passed Wednesday.

The finance committee passed the wealth tax in their last regularly scheduled meeting of the session. April 2 will be the last day for finance bills to be read into the record on the house floor, leaving little time for the bill to be deliberated on in the Rules committee, which will take up the bill next. If Rules passes it out, the bill will go to the House floor where progressives hope to send it to the Senate.

2. The Legislature’s latest biennial budget proposals made two traditional foes, tenants and landlords, happy—with some footnotes.

In budgets released this week, legislators from the House and Senate allocated roughly $1 billion to new rental assistance and eviction protection programs. (The House allocates $1 billion, the Senate $850 million). The state will use the money to pay off rent debt accrued by tenants during the statewide eviction moratorium and fund legal counsel in eviction cases.

Continue reading “Olympia Fizz: House Committee Passes Wealth Tax, House and Senate Take Action on Tenant Rights and Funding”

Guest Editorial: Seattle’s Restaurants Can’t Wait for COVID Relief

Photo by Belinda Fewings on Unsplash

By Debra Russell and Jessica Tousignant

The lockdown was a necessary step in the fight against the coronavirus pandemic, but we couldn’t predict what it would mean for businesses. Restaurant owners didn’t know what to expect.

We were so grateful when Seattleites stepped up and supported us by ordering food for takeout. You were patient and generous as we built an entirely new business model. It was a bumpy transition, but you reminded us that we’re all in this together. Even now, your takeout orders are keeping many of us afloat.

But we can’t forget that our members who are hanging on are the lucky ones. One of the most frustrating aspects of the current economic downturn is that we don’t have enough data to understand exactly how bad things really are. It’s unclear how many neighborhood businesses have closed permanently since March.

The clearest overview of the economic impact on businesses nationwide arrived in a recent report from Yelp, which showed that of all the businesses that closed since March , about 61 percent have now closed permanently. That’s 97,966 businesses wiped out nationwide. Due to the customer-driven nature of Yelp’s reporting, this almost certainly represents an undercount—and in Washington, the numbers are likely even worse.

When ordinary people don’t have enough money to spend at local businesses, those businesses don’t make enough money to stay open.

The Yelp data confirms what we have suspected to be true: We’ve already lost half the businesses that had to temporarily close for lockdown, and the rest are imperiled. A majority of Seattle’s neighborhood restaurants will likely close by the end of the year.

Let’s be clear: this isn’t on our customers. They’ve done more than their part to keep us afloat. But the people and organizations who are supposed to use their resources and visibility to stand up for and protect small business have been entirely absent.

Local leaders claimed we should wait for the federal government to lead the way in the economic response to the pandemic. But the US Senate adjourned for vacation until September 8 without any agreement on a new stimulus plan. Since the additional $600-per-week unemployment benefits written into the last stimulus package were allowed to expire, some of our members report business has dropped by as much as 25 percent. When ordinary people don’t have enough money to spend at local businesses, those businesses don’t make enough money to stay open.

For years, powerful business interests like chambers of commerce, the Washington Hospitality Association, and others have used small businesses as a political football. Today, small businesses are shuttering around Seattle, people are losing their jobs, and these same organizations have quietly looked the other way.

The federal government told states and cities that they’re on their own, and local leaders have failed to step up to fill the void. Mayor Jenny Durkan, for instance, vetoed the expenditure of emergency funds—as though this economic collapse isn’t the biggest emergency most Seattleites have ever seen. (The city council subsequently overturned that veto, but Durkan’s budget would reallocate the money for other purposes.)

Continue reading “Guest Editorial: Seattle’s Restaurants Can’t Wait for COVID Relief”

Morning Fizz: Homeless Tax Preemption and Election Speculation

Homeless advocates see a hotel in Renton that was converted into a temporary shelter as a major success story. Some local politicians see it differently.

Today’s Fizz:

1. This week, cities across King County will be voting on measures that could reduce the size of a proposed countywide sales tax for very low-income housing by millions. On Monday night, Renton, Tukwila, and Issaquah were among first few cities to decide whether they wanted to pass their own 0.1 percent sales tax, as authorized by the state legislature earlier this year, to pay for housing inside the city for people making up to 60 percent of the area median income. Renton’s council voted “yes” unanimously; Issaquah’s approved it on a 4-3 vote; and Tukwila’s rejected the proposal on a 5-2 vote.

I first reported on the proposals last week. Since then, items to supplant the countywide sales tax, which the King County Council will likely vote on next week, have appeared on city council agendas across, primarily South King County—from Maple Valley to Federal Way to Kent. Every city that opts out of the tax—that is, every city that opts to pass a local version of the tax, with proceeds the city can keep to itself—takes some money away from the potential size of the countywide proposal.

On Monday night, proponents of local taxes argued that suburban cities deserved local autonomy to decide what to build in their communities, and specifically cited an emergency shelter for chronically homeless people in Renton—a hotel that has been touted by advocates and service providers as a major success story because it has enabled people to stabilize and begin to deal with underlying conditions that contribute to their homelessness—as an example of what the county would impose on cities if they didn’t act first, and fast.  “By passing this” local tax, Renton council member Valerie O’Halloran said, “we are retaining 100% of the say of how our money is spent within our community.”

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Opponents of going it alone argued that the whole point of being part of a regional solution to homelessness was to think regionally, because homelessness doesn’t end at any single city’s borders. Tukwila council member De’Sean Quinn pointed out that the countywide proposal, which could raise up to $400 million to purchase existing buildings and convert them to supportive housing for chronically homeless people, is a big pot of money that allows the county bond for an even bigger pot of money; collecting smaller amounts on a local-only basis, he argued, would inevitably lead to slower and smaller developments.

The King County Council will vote on the countywide tax next week.

2. Speaking of the county council, rumor is that longtime Republican council member Pete von Reichbauer (who represents much of South King County) does not plan to run for reelection. Possible contenders for the position include former Democratic state representative Kristine Reeves, Federal Way city council member Lydia Assefa-Dawson, Auburn mayor Nancy Backus, and current Republican state rep Drew Stokesbary. Continue reading “Morning Fizz: Homeless Tax Preemption and Election Speculation”

Unanswered Questions from Durkan’s Housing Announcement

On Wednesday, city staffers, supporters of Mayor Jenny Durkan, and members of the media crowded into a  small black-box theater at the 12th Avenue Arts building on Capitol Hill to hear what was billed as a major speech outlining the mayor’s vision for affordable housing in Seattle. (Press, many of whom had expected the event would include an opportunity to ask questions, were relegated to a “reserved” row in the very back.)

Ultimately, the event—which consisted of a State of the City-style address outlining what the city has done on housing recently, followed by an announcement of two initiatives that were already in the works—didn’t make much news. Durkan said that Seattle plans to take advantage of a new state law allowing cities to use a portion of existing state sales tax for housing, by bonding against future revenues to get about $50 million for housing for formerly homeless people up front. And she said the city would extend the multifamily tax exemption program that gives developers a property tax exemption if they agree to set aside 20 percent of new units for low-to-middle-income renters for 12 years. (The city renews the tax break every three to five years).

In fairness, the MFTE announcement did include a bit of real news: Under Durkan’s plan, the city will cap rent increases at MFTE units at 4.5 percent a year. Under federal rules, potential (though not necessarily actual) rent increases for these units track to area median income—when median income goes up, say, 10 percent because a bunch of high-paid tech workers move into the city, rents for low-income people living in tax-exempt buildings can go up 10 percent as well, even though the people living in those units obviously aren’t seeing their incomes rise 10 percent every year. (In practice, huge annual rent increases for existing units would be out of scale with the overall market in many parts of town, although it does happen). Last year, the city used some creative math to freeze rent increases at MFTE properties to prevent apartment owners from raising rents at the rate of median income increases, but the 4.5 percent cap puts a firm limit on how much landlords can charge.

Otherwise, though, Durkan’s “Seattle Housing Now” announcement raised more questions than it answered. Here are some of those questions, along with a few potential answers.

• What’s going on with the pending sale of the Mercer Megablock?

Durkan provided a few sparse details about the pending sale of the Mercer Megablock, a three-acre city-owned site in South Lake Union that could bring in upward of $100 million. The mayor will likely announce a plan and buyer—reportedly Alexandria Real Estate Investment, Inc., a real estate investment trust that focuses on life science campuses—in the next two weeks. The mayor’s office recently briefed council members on the deal, sort of: Staffers reportedly showed council members a PowerPoint that contained few specifics, and took the document with them when they left.

What we do know from the mayor’s speech is that the new development will include some housing on site (the request for proposals for the project called for at least 175 rent-restricted units), and that the city will use some of the revenues from the sale to buy properties in areas with a high risk of displacement, to provide low-interest loans to struggling homeowners who want to build cottages in their backyards, and to fund homeownership opportunities.

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What was unclear from Durkan’s pre-announcement announcement was how she will propose splitting up those revenues among programs that help low-income renters, middle-income workers (the “teachers, nurses and firefighters” that are a frequent Durkan talking point) and higher-income homebuyers and homeowners. Some housing advocates had argued that the city should hang on to the megablock property and build affordable housing on the site, or, failing that, invest heavily in housing for low-income people who are being driven out of the city by rising rents. It remains to be seen how much Durkan took their pleas to heart, but programs for homebuyers and homeowners tend to be aimed at people making as much as 120 percent of median income, or about $130,000 for a family of four. (For a single person, 120 percent of median works out to $91,000). If Durkan’s plan for the megablock money is skewed toward subsidizing people making six-figure salaries, it will likely come under fire from the council; on seeing an early draft of the mayor’s ADU plan, council member Lorena Gonzalez reportedly responded that the high-income subsidy (a loan product aimed at people making up to 120 percent of median) would end up disproportionately benefiting  white homeowners, not people of color facing displacement in areas like the Central District. Her office says they’ve asked the mayor’s office to do a race and social justice analysis of the proposal, and that they’ve said they will.

The mayor will likely announce a plan and buyer—reportedly Alexandria Real Estate Investment, Inc., a real estate investment trust that focuses on life science campuses—in the next two weeks.

• Why didn’t the MFTE plan go further?

One perennial question about the multifamily tax exemption program is whether it results in enough  affordable housing to justify the cost, which amounts to about $26 million in lost taxes every year, according to the most recent program status report. The program ensures that between 20 and 25 percent of new units are available to people making between 65 and 85 percent of median income (a number that varies depending on the size of the unit and where it is in the city). The idea behind the 12-year tax break is that by the time the tax expires, new development elsewhere will have been built to meet demand at the top of the market, and the MFTE units will have depreciated in value to the point that rents will be affordable relative to the rest of the market. Because housing development hasn’t kept up with population growth, this hasn’t happened, raising the question of whether the subsidy is deep enough to justify the tax break for developers.

One perennial question about the multifamily tax exemption program is whether it results in enough  affordable housing to justify the cost, which amounts to about $26 million in lost taxes every year,

Options the mayor and her middle-income advisory council, which advised Durkan on the plan, could have proposed include lowering the income eligibility so that lower-income people could participate in the program, which would lower rents (currently, MFTE landlords can charge someone making 80 percent of median income $1,737 for a one-bedroom apartment, which is basically market rent); placing a more stringent cap on rent increases; or limiting the program to larger “family” units, on the grounds that the market is already producing lots of small units at rents basically equivalent to the units the program subsidizes with tax breaks.

• What’s up with the Uber/Lyft tax?

Durkan has been working since last year on a plan to tax Uber and Lyft rides to pay for a laundry list of transportation and housing programs, but the proposal has been slow to get off the ground. Uber and Lyft generally have opposed the plan, arguing that it won’t reduce congestion downtown, because ride-hailing services only amount to a small percentage of car trips downtown and because of a phenomenon called induced demand, where small reductions in congestion lead people to drive when they ordinarily wouldn’t have. The ride-hailing companies have called for broad congestion pricing on all downtown drivers, which (unlike a tax targeting them specifically) would require voter approval.

Durkan’s latest plan would reportedly fund new investments in housing with the tax. But  it’s unclear when—or whether—the mayor will actually release a final proposal. Another question, if Durkan does end up proposing the tax, is whether the revenues will go to capital investments (building new units) or operations and maintenance (the less flashy but critical work of running them). Permanent supportive housing units for very low-income people (like the ones that would be funded through the new sales tax revenues) are expensive to run because they (unlike regular apartments) require full-time staffing and case management. If the ride-hailing tax passes, that money could be used to build housing around transit stations (providing a nexus, sort of, to justify using a transportation tax to pay for housing) while the money from the sales tax can go toward O&M. Without the Uber/Lyft tax, that equation becomes more challenging.

Durkan’s latest plan would reportedly fund new investments in housing with a new tax on ride-hailing services. But  it’s unclear when—or whether—the mayor will actually release a final proposal.

• When is Durkan going to announce a new Office of Housing director?

Durkan told OH director Steve Walker (whose final day is today) he was out back in March. His deputy director, Miriam Roskin, went on sabbatical shortly after that and is not expected to return. Durkan has had four months to appoint a replacement for Walker, but has not yet done so. It’s unclear when the mayor will announce Walker’s replacement. In June, 30 housing advocacy groups sent a letter to the mayor outlining their values and recommendations for the hiring process—an effort, according to Puget Sound Sage policy and research analyst Giulia Pascuito, to “push back on [the] narrative we’ve seen from the Mayor’s office around ‘middle-income housing’ and to let the city know that advocates are paying attention” to the appointment.

• Why didn’t Durkan acknowledge state Rep. Nicole Macri (D-43), in her speech?

An oversight, perhaps—her official press release mentions Macri by name—but it was somewhat jarring that Durkan didn’t shout out one of the prime sponsors of HB 1406, the legislation that made it possible for the city to use sales tax revenues to fund housing, during her speech, which included praise for Macri’s co-sponsor, June Robinson, as well as house speaker Frank Chopp and state Sen. David Frockt.

Six Things to Think About When Thinking About the Head Tax

This story originally appeared in the South Seattle Emerald.

Weeks of tense negotiations, heated yelling sessions, and a high-stakes game of chicken between the biggest employer in the city and the city council culminated in a unanimous city council vote to approve a $275-per-employee “head tax” on Monday afternoon. But what does the vote mean? Is Amazon’s threat to abandon the city off the table? And where does Seattle go from here?

We’ve put together a handy primer to answer these and other pressing questions about this latest effort to address the growing homelessness crisis in Seattle.

1. The $275-per-head tax the council passed Monday was not the tax a majority of the council wanted to pass. Last Friday, in fact, the council’s finance and neighborhoods committee (made up, on this occasion, of all nine council members) approved a much larger tax of $500 per employee, which would have raised around $75 million a year. That vote, however, was too narrow (at 5-4) to withstand a likely veto by Mayor Jenny Durkan, who offered up a $250 version of the tax as a counterproposal last week. The “compromise” most council members agreed to over the weekend raised the total size of the tax by just $25 per employee, enough for Durkan to cheerfully declare victory on Monday evening and for council members who wanted a larger tax, such as council member Mike O’Brien, to say that they had done everything they could.

2. The original $500 tax proposal didn’t come out of nowhere—it was recommended by the city’s Progressive Revenue Task Force, a group that was established after a group of council members failed to pass a smaller, but similar, business tax during the city council’s 2017 budget process. The task force was charged with coming up with a tax that would produce between $25 million and $75 million in revenues; they ended up proposing a $500-per-employee tax on businesses with more than $20 million in gross revenues after considering, and rejecting, lower tax levels that would apply to a larger number of businesses. By targeting the tax at businesses at the very top of the city’s revenue scale, the task force was attempting to respond to objections by smaller businesses (those with more than $5 million but less than $20 million in gross revenues) operate on narrow profit margins and shouldn’t really count as “big businesses.” The more businesses the task force exempted from the tax, the larger the tax had to be to yield the same revenues, which is how the task force arrived at $500

3. The head tax isn’t enough to address the problem. The tax, which sunsets after five years, would raise about $47 million a year for new housing, rental subsidies, and supportive services. Under the spending plan adopted by the council, that would be enough to build about 591 units of housing—288 for low-income people making between 30 and 60 percent of Seattle’s area median income and 303 permanent supportive housing units for formerly homeless people making between 0 and 30 percent of median.  The plan also includes rental subsidies to get homeless people into “immediate housing,” funding for a total of about 250 new shelter beds and authorized encampments, and more money for safe parking lots and sanitation stations.

A few hundred housing units is obviously far from adequate to house the more than 8,500 people who were homeless in Seattle at the beginning of 2017, when All Home did its most recent homeless census—a number that has likely only grown since then. In fact, a report commissioned by the Seattle Metropolitan Chamber of Commerce, by the consulting firm McKinsey & Co., concluded that the county needs an additional 14,000 units of affordable just to address the current needs of people experiencing homelessness in King County. Building that much housing and addressing the other needs of King County’s homeless population would cost the public and private sectors $410 million a year, the independent report concluded, and that’s only if the annual rate of people falling into homelessness does not increase. King County would need to spend between $164 million and $215 million a year to pay its “share” of that $410 million total.

Michael Maddux, a staffer for council member Teresa Mosqueda’s office, crunched the numbers in the report and determined that Seattle’s “share” of that countywide total would be somewhere between $59 million and $79 million. The $47 million in annual spending that the $275 head tax would provide falls short of the bottom end of that range.

4. The tax that passed Monday is just the beginning of the story. Although the national news crews packed up their cameras and left before the council could begin discussing how to spend the new revenues on Monday, the spending plan is in many ways more critical than the size of the tax. The plan Durkan proposed for her $250 tax would have focused the vast majority of its spending on emergency shelter, encampment removals, and other stopgap solutions, rather than housing, building just 250 units of new affordable housing over five years.

On Monday, the council approved a spending plan that took the opposite approach, emphasizing housing over temporary shelter. However, the real debate will come later this year, when Durkan proposes an implementation plan for the tax as part of the city’s annual budget process. (The spending plan adopted this week sets the council’s priorities, but is itself a nonbinding resolution.) That plan, and the budget process, will give proponents of the Durkan spending model another opportunity to attempt to recalibrate the spending balance in the tax proposal.

The city’s adopted Pathways Home plan, which directs the city to focus its homeless service spending on programs that get people off the streets and into “permanent housing” as quickly as possible, recommends that the city do the exact opposite of what Durkan recommended in her original spending plan. Last year, the city adopted a spending plan for homeless service providers that actually eliminated funding for a large number of basic shelter beds, on the grounds that those shelter providers failed to demonstrate that they could move their clients into permanent housing quickly. Pathways Home is controversial, in part, because it penalizes nonprofits that serve the hardest to house, but the “housing first” principles that underlie it are right in line with the McKinsey report that suggested a lack of housing is the fundamental problem underlying Seattle’s homelessness crisis.

5. Seattle has continued to insist that it won’t continue to “go it alone” on funding for homelessness, but King County has yet to step up and propose its own tax plan to supplement Seattle’s. Although Durkan announced Monday that King County will provide $5.7 million in one-time funding to help keep shelters and authorized encampments open in 2018, the county has been noticeably quiet about what it will do to fund housing and services on an ongoing basis. One Table,” a regional task force made up of elected officials, advocates, and business leaders from across King County, began meeting in January. So far, they have announced that Pearl Jam will hold two concerts in Seattle to raise at least $1 million for homelessness—and not much else. The group’s last two public meetings were canceled with minimal public notice, and the closest they have gotten to a set of recommendations is nine-page document, released quietly last month, that includes no cost estimates, no funding proposals, and no timeline for implementing any of the ideas on the list. That document no longer appears to be available on King County’s website.

6. Finally, the passage of the head tax is unlikely to end the vitriol that has accompanied the debate over homelessness in the past few months, exemplified by a recent town hall meeting at a church in Ballard where homeowners shouted down a panel of elected leaders and progressive revenue task force members with bellows of “BULLSHIT!” “FUCK YOU!” and “RESIGN NOW!”  The problem with any spending plan that fails to house enough people to make an appreciable dent in homelessness is that it leaves too many people on the streets, opening the city up to the predictable objection that “no matter how much money we give them, the problem keeps getting worse”  and the problem with any spending plan that takes a large number of people off the streets and stuffs them into new “tiny house” camps and shelters is that those people have nowhere to go and shelter becomes a way of warehousing people indefinitely.

Meanwhile, the problem with spending the amount that experts consider “enough” is that it tends to inspire fierce pushback from the business community. (According to Maddux’s report, a thorough response may require about $69 million per year from Seattle and $120 million from the rest of the county.)  Amazon threatened to stop construction on one of its downtown projects over the original $75 million head tax proposal, and said on Monday that the adopted $47 million tax “causes us to question our growth here” in Seattle. That kind of talk tends to send those who have benefited from the recent Amazon-fueled boom, such as homeowners who have seen the value of their properties skyrocket to an average of $820,000 over the last few years, into a tizzy. Amazon may not leave Seattle, or even slow its growth here—Fast Company, the business magazine, called the company’s latest statement “passive-aggressive and vaguely threatening”—but the possibility that the company, which just reported $1.6 billion in quarterly profits, might retaliate against the city remains a guillotine that the company is more than happy to hold over the heads of those who have benefited from its success.