Amazon puts Seattle office tower on hold over affordable housing tax plans

The Space Needle is seen on the skyline of tech hub Seattle Washington

The Space Needle is seen on the skyline of tech hub Seattle Washington

The company also said it's considering subleasing office space it has already leased in another downtown corporate high rise under construction.

The Seattle Times earlier reported Amazon's construction pause.

Seattle has nearly doubled its funding for affordable housing and homeless services programs since 2013 to $63 million per year, according to the report in the Seattle Times.

"Seattle is a city of great prosperity that has experienced tremendous growth of its economy and population", the draft read.

The "head tax" would charge 26 cents per employee per hour for Seattle-based companies with $20 million or more in annual sales, affecting 585 of Seattle's largest businesses. "However, this growth and prosperity has directly contributed to the rapid increase in the number of individuals and families experiencing homelessness".

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Construction workers shouted down a pro-employee head tax press conference at the Amazon Spheres in downtown Seattle on Thursday. This head tax would apply next year and in 2020, after which it would be replaced by a 0.7% payroll tax.

The Seattle city council is scheduled to vote on the new tax proposal on May 14.

Seattle Mayor Jenny Durkan has indicated support for the head tax, but told The Seattle Times she is "deeply concerned about the impact this decision will have on a large range of jobs". We need meaty taxes, not token charity, to address our crisis in affordable housing and homelessness: another dozen or two tiny-house villages, thousands of subsidized apartments, opportunities for all homeowners to avoid displacement by remodeling to rent rooms and backyard cottages.

The company recently announced it's adding new jobs in Vancouver and Boston, as well as making the final decision over where its second headquarters will be located.

Communities across North America are vying for a similar investment from Amazon.

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