I checked in with Paul Guppy of the Washington Policy Center to find out his thoughts on the proposed linkage tax. The Washington Policy Center is “an independent, non-profit, think tank that promotes sound public policy based on free-market solutions.” So it’s not a surprise the Guppy doesn’t agree with the proposal. But I asked him to share his thoughts and I find his last point about the politics of district elections most interesting.

–Roger

We are opposed to the city imposing a “linkage fee,” because it would only serve to increase the already-high cost of housing in Seattle.  Here are the points that Washington Policy Center would make against this proposal if it is formally introduced next year.

First, imposing a new tax (which is what a “linkage fee” is, no matter what nice-sounding name city councilmembers give it) would only drive rents up higher, because all building costs must be passed on to renters.  Enacting a new Seattle tax would only make the problem the City Council is trying to solve worse.

Second, the city already runs a subsidized public housing system.  It’s not fair to impose a new tax only on renters in certain neighborhoods when public housing is already funded by general taxes and federal grants.  Public housing should be a shared responsibility of the community, not a cost targeted at renters.

Third, instead of increasing the tax burden on renters, city officials should look at the high property taxes, high sales tax, high utility costs and impact fees they are already charging that make living in Seattle so expensive.  Some commonsense policy changes by the city would make Seattle more affordable for everyone.  City councilmembers should lead by example, to show what they are willing to do to make housing more affordable, instead of simply seeking more money from others.

Lastly, an important political consideration is that in 2015 Seattle is moving to a system of district elections for city council positions (instead of all council members being elected city-wide as they are now).  City councilmembers may find it unpopular to vote for a new tax on renters in the same neighborhoods where they plan to run for re-election – they may just be handing a controversial issue to their opponents.

Paul Guppy is a graduate of Seattle University and holds graduate degrees from Claremont Graduate University and the London School of Economics.  He worked for 12 years in the U.S. Congress as a Chief of Staff and Legislative Director.  He is currently Vice President for Research at the Washington Policy Center, where he writes extensively on tax policy, public finance and other issues.  He is a frequent commentator on radio and TV news programs, and in newspapers across the state, and he is editor of the Policy Guide for Washington State.