The Atlases are not yet shrugging. They’re as productive as ever; they’re just leaving Seattle. From Tyler Durden at zerohedge.com:
To look at the Pacific Northwest today one would never know that 25 years ago the region was an economic powerhouse at the forefront of technology and business innovation. At the time Portland and Seattle were known for constant rain as well as raining cash, and the “millionaire density” of the Seattle area was at historic highs. The tech boom and international trade with Asia had created a Silicon Valley of the northern coast.
Companies like Nike, Starbucks, Microsoft and Amazon established corporate offices and generated tens of thousands of jobs, and many of those jobs were considered high income. People can debate the overall effects of the population surge to the region; there are many who would argue that Washington and Oregon were better off when they were considered backwoods fishing and lumber states. That said, it’s undeniable that for a time the Northwest was one of the most desirable and lucrative places to live in the US.
That’s all gone now. The wealthy are leaving Seattle like it’s a leper colony and all that’s left are millions of broke activists, poverty stricken residents and illegal immigrants. Some blame the constant riots or the steady stream of welfare recipients. Others say that the draconian covid mandates caused people to jump ship. However, a primary factor in businesses (and money) leaving the city was the institution of a progressive “Payroll Expense Tax”.
The PET is a quarterly tax approved by the Seattle City Council in 2020 in the middle of the Covid hysteria. It increases taxes on businesses depending on how many employees they hire and how much their employees get paid. In other words, it punishes companies that hire more people and pay them a good salary. The conditions of the PET are very similar to what Democrats say they want for their “Wealth Tax” – An extra tax on top earners and large companies beyond the income tax.
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