JumpSta rt Seattle Councilmember Teresa Mosqueda Position 8 Citywide the problem Triple Crises Public Health Crisis Economic Crisis Underlying Inequities Exacerbated the problem Austerity Hurts Our Recovery States that cut spending after the 2007 Great Recession had worse unemployment, lower private sector employment and slower GDP growth vs states that expanded spending. https://cdn.americanprogress.org/wp-content/uploads/issues/2012/06/pdf/austerity.pdf the problem Washington Has the Most Regressive Tax System 17.8% 12.4% 11.0% 9.2% 2021 LOWEST 20% SECOND 20% MIDDLE 20% FOURTH 20% 7.1% 4.7% NEXT 15% NEXT 4% 3.0% TOP 1% The poorest people in WA pay the biggest portion of their income in taxes https://itep.org/wp-content/uploads/whopays-ITEP-2018.pdf The poorest people in Washington pay the largest share of their income in taxes and the richest pay the smallest portion of their income. the solution in 2020 $86 MILLION Invested in Community COVID Relief in 2020 Small Businesses Housing Immigrants & Refugees Food Security the solution 21% in 2020 Supporting Small Businesses $18 MILLION in 2020 1,300 $10k Grants to Small Businesses • 340 $10k Grants to Child Care Providers the solution in 2020 Immediate Housing 42% $36 MILLION Homelessness Prevention • Shelter De-intensification • Mortgage + Foreclosure Assistance in 2020 the solution 21% in 2020 Immigrant & Refugee Support $18 MILLION in 2020 Financial Assistance • Language Access the solution 16% in 2020 Food Security $14 MILLION in 2020 Emergency Grocery Vouchers for ~16k Households the solution in 2021 $86 MILLION Invested in the Community in 2021 Continuity of Services & Programs COVID Relief Programs the solution in 2021 Continuity of Services 75% & Programs in 2021 Reinvesting in city programs, contracts, services cut due to the estimated $550 million shortfall between 2020-2021 COVID Relief 20% Programs in 2021 5% for administrative costs Investments in food security, small business support, housing security, immigrant & refugee support, etc the solution in 2022 $203 MILLION Invested in the Community in 2022 Housing and Services Business Support Equitable Development Initiative the solution in 2022 65% Housing and Services in 2022 Creating affordable housing Equitable Development 10% Initiative in 2022 Addressing systemic inequities and creating economic opportunities 20% 5% for administrative costs Business Support in 2022 Supporting local businesses and economic workforce stability funding A Progressive Payroll Tax on Large Corporations Paying High Salaries Corporations with Payrolls of $7 Million+ AND Salaries of $150,000+ funding A Progressive Payroll Tax Bigger Corporations with Higher Salaries Contribute More Compensation Seattle Payroll Between $7 Million & $1 Billion Seattle Payroll Greater Than $1 Billion $150,000 - $499,999 0.7% 1.4% >$500,000 1.4% 2.1% funding Who Doesn’t Pay Business with Payrolls under $7 Million DON’T PAY All Salaries under $150,000 DON’T PAY 97% of All Businesses, at Least DON’T PAY Employees DON’T PAY After 10 years After the County or State Creates Progressive Revenue how it’s unique How This Legislation is Unique $$$ Broad Coalition Very Progressive Payroll Tax Small Business Support Sunset timeline $86 MILL I O N I NVESTED Small Businesses Housing Food Security Immigrants & Refugees $86 M I L L I ON I NVEST ED Programs & Services COVID Relief $203 MILLION I NV E ST E D Housing & Services Business Support Equitable Development Annual Investments Replenish City Reserves 2020 Spending City Reserves 2021 Tax Billing Starts 2022 Tax Collection Starts 2030 Tax Sunset