BUSINESS NEWS | Mon Jul 10, 2017 | 11:26pm EDT

Seattle lawmakers pass tax on highest earners; mayor eager to be sued

By Eric M. Johnson | SEATTLE

Seattle's city council unanimously passed a pioneering income tax on the city's highest earners on Monday, a measure that has become a clarion call for Democrats there even though it is likely to face a swift legal challenge over violating state law.

The measure created a 2.25 percent tax rate on individuals earning above $250,000 and married couples jointly earning above $500,000. The tax will add roughly $140 million in new annual revenue and affect fewer than 20,000 residents in the city of more than 660,000, supporters say.

The proposal has become a rallying cry for Democrats and activists in the liberal-leaning city who used local opposition to Republican President Donald Trump to advance long sought-after local policies.

Washington is one of seven U.S. states without a tax on personal income, and no city in the state has an income tax.

Supporters of the Seattle proposal, including Mayor Ed Murray, say the current tax code unfairly burdens poor and middle class residents because it relies on "regressive" taxes, such as taxes on property and sales transactions.

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