Seattle’s “JumpStart” tax cost city 30k jobs
A recently released report from the Downtown Seattle Association (DSA) concluded that the city’s “JumpStart” payroll tax, first implemented in 2020, has cost the city thousands of jobs. The report noted, ironically, that instead of a “jump start,” downtown Seattle has experienced a “slowdown.” “Since being implemented, downtown Seattle has lost around 30,000 jobs,” DSA found. “The office vacancy rate increased to 32% in the downtown core. And more than $10 billion in office value has been lost.” The report noted that over that same time span, the nearby city of Bellevue “has seen more jobs come to its core, lower office vacancy, and the stability of office building values.” Bellevue saw office building values increase 7%, while Seattle’s office property values have decreased by 48%. DSA observed, “Bellevue’s more favorable tax climate has made it increasingly attractive to employers and investment relative to Seattle.”