Seattle Chamber of Commerce challenges tax on high-earners

SEATTLE (AP) — The Seattle Chamber of Commerce has filed a lawsuit asking the courts to overturn a new tax enacted by the city that would collect revenue based on how much employees make at some of Seattle’s biggest employers. The “Start Up Seattle Tax” was passed by the City Council last July. It affects about 800 Seattle businesses with payrolls of more than $7 million. The suit says the tax is illegal and unconstitutional. The tax takes effect on Jan. 1. It would be paid by the company on behalf of Seattle-based workers who earn over $150,000 annually. The council says the tax is projected to raise $214 million in 2021.