What is the Amazon Tax


The Amazon tax has been the talk of the town in Seattle for about some time. This is because of the issue regarding the payment of taxes by big businesses such as Amazon concerning the levy tax given upon every employee. This is relatively huge in terms of capital investment. The bigger the number of employees, the larger the tax. Even the voucher codes and the special discounts that we receive from physical stores and online shops like Lazada and Zalora may be affected. It is quite difficult to fight a law that has already been assigned to the businesses. But because of democracy, the big companies that are affected by the tax will not go unnoticed.

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The history

tax moneyThe Amazon tax is regarded as such because Amazon is the main target of the ordinance. It is a company that has a large base in Seattle. Although it was named after the famed e-commerce store, other private businesses are also affected by the levy tax.

The Amazon tax is also known as the Seattle head tax. Officially, this tax is named as employee hours tax or EHT. This tax is mainly created to target big companies with a huge number of employees. The goal of this tax is to collect money and create a budget for other programs, particularly, the homelessness crisis.

Seattle has long been characterized as the city of opportunities. But with that, it has also been recognized as a place with a large percentage of homeless people. The statistic has blown in the last few years and is now being realized as a concrete problem of society. With this issue comes the variety of solutions that the legislators have discussed. In it comes the 2017

Seattle head tax.

The employee hours tax is a kind of tax that is levied toward big employers in Seattle in Washington. In the list of companies included are Amazon and Starbucks. They would be paying, initially, a $500 tax for every employee that they have in their company. This amount is huge in terms of budget. The legislation estimated that they will be having an estimate of $20 million in the budget annually.