“Starbucks: Opposing a Local Tax to Address Homelessness while Promoting Social Justice.”

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“Starbucks: Opposing a Local Tax to Address Homelessness while Promoting Social Justice.” Be sure to address the following questions but remember this is a policy memo, so do not list the questions followed by an answer. What problem was to be addressed by the city council action? How was this defined and what was proposed? What actions did the city council vote/action spark? Why and what was the basis for the response? Was it expected? What other relevant points should be included related to this problem, the action taken, and the two subsequent actions that followed.

You should consider that you are on the staff of one of the city council members that has asked for a memo on these events to help better understand what could have been done better.

In a 1-2 page policy memo, drawing on the readings and lecture, as a member of a congressional staff, you have been asked to address issues of policy definition based on the case study: “Facebook Faces the Regulators.” What is the public problem or public problems at issue here? How should/could these issues be defined? How would the political environment be characterized and how does it impact the myriad public problems associated with this case. Provided any other necessary context that would provide a detailed understanding of the case.

Sample Solution

Policy Memo: Seattle City Council Tax Proposal and Starbucks’ Response

To: City Council Member [Name] From: Staff Date: March 13, 2024 Subject: Analysis of Seattle City Council Tax Proposal, Starbucks’ Opposition, and Potential Strategies

Introduction

This memo provides an analysis of the Seattle City Council’s proposal for a tax on large businesses to address homelessness, Starbucks’ opposition to the tax, and potential strategies moving forward.

Problem Addressed

The Seattle City Council aimed to tackle the growing issue of homelessness within the city. Seattle has one of the highest rates of homelessness in the nation, and the council sought to raise funds for additional affordable housing and homelessness services.

City Council Action

The City Council proposed a tax on companies with an annual revenue exceeding $20 million. This “employee hours tax” would require these companies to pay $275 per employee per year. The estimated revenue, $75 million annually, would directly fund programs and initiatives aimed at reducing homelessness.

Starbucks’ Response and Rationale

Starbucks, a Seattle-based company, emerged as a vocal opponent of the tax. They argued that the city had not effectively utilized existing resources to address homelessness and that the tax unfairly burdened businesses. While acknowledging the severity of homelessness, Starbucks felt the solution wasn’t simply throwing money at the problem. They advocated for reforming existing homeless programs to demonstrate better outcomes before implementing a new tax.

Unexpected Response and Impact

The public response to Starbucks’ opposition was mixed. Some residents supported the company’s call for better utilization of existing funds, while others criticized Starbucks’ opposition to a tax that would directly benefit a local social issue. Ultimately, the City Council, facing pressure from businesses, repealed the tax proposal less than a month after its initial approval.

Relevant Points and Considerations

  • Framing the Problem: The City Council framed homelessness as a social and economic crisis requiring additional resources. Starbucks, however, framed the issue as a complex problem needing reform within existing programs before additional funding.
  • Tax Fairness and Burden Sharing: The proposed tax targeted large businesses, raising questions about fairness and burden sharing.
  • Transparency and Public Trust: Starbucks’ opposition raised concerns about corporate responsibility and commitment to the community.
  • Alternative Solutions: The episode highlights the need to explore alternative funding mechanisms and potential public-private partnerships to address homelessness.

Moving Forward

  • Public Engagement: The City Council should engage in transparent and collaborative discussions with residents, businesses, and social service providers to develop a comprehensive plan for tackling homelessness.
  • Data-Driven Approach: Investing in data collection and analysis is crucial to identify the effectiveness of existing programs and inform future resource allocation decisions.
  • Exploring Funding Options: A wider range of funding options beyond business taxes should be considered, potentially including federal grants and innovative financing mechanisms.

Conclusion

Addressing homelessness requires a multifaceted approach. This case study highlights the importance of clear problem definition, public engagement, and exploring diverse solutions. By considering these factors, the City Council can develop more effective strategies to address this critical social issue.

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