Tax the rich. It sounds great on a bumper sticker. But in the real world, money has wheels. A grim new report from the Downtown Seattle Association (DSA) proves just how fast those wheels can spin. Since Seattle slapped businesses with its “JumpStart” payroll tax in 2020, the city’s downtown core has been bleeding out. It is a self-inflicted wound.
The numbers hurt. Seattle shed roughly 30,000 jobs. Office vacancies skyrocketed to a staggering 32 percent. Meanwhile, more than $10 billion in commercial property value simply vanished into thin air. That is a 48 percent plunge in office values since 2019. It turns out, calling a tax “JumpStart” does not actually start any engines. It stalls them.
Just across the Lake Washington bridge lies Bellevue. No payroll tax. No social housing tax. Lower property taxes, too. The contrast is brutal. While Seattle withered, Bellevue thrived. The DSA report paints a stark picture of two cities moving in opposite directions. Bellevue actually gained jobs. Its office vacancy sits at a much healthier 24 percent, and its property values ticked up by 7 percent.
Capital goes where it is welcome. It stays where it is appreciated. Bellevue made itself a sanctuary for businesses fleeing Seattle’s progressive crusade.
Naturally, City Hall is spinning this as a win. Seattle Mayor Katie Wilson defended the payroll tax, insisting it saved the city from a post-pandemic collapse. She pointed out that taxing the highest corporate salaries brought in way more cash than anyone expected. Sure. You can milk a cow dry, but eventually, the cow leaves the pasture. Right now, that pasture is Bellevue.
