Seattle repeals tax on companies after Amazon fights back

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SEATTLE (AP) -- Seattle leaders have repealed a tax on large companies such as Amazon and Starbucks after a backlash from businesses over the effort designed to combat a growing homelessness crisis.

Alaska Airlines, Expedia Group and Holland America Group also opposed the so-called "head tax" of $275 per employee on companies that gross at least $20 million per year in Seattle.

The City Council voted 7-2 Tuesday after supporters and opponents packed a meeting with signs saying, "Tax Amazon, housing for all" and "No tax on jobs."

It's a stark reversal from a month ago when the council unanimously approved the tax. It has divided Seattle and drawn criticism from businesses as misguided.

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