Explore The NRA Universe Of Websites

APPEARS IN News

Seattle’s Gun Tax: A Textbook Case on the Law of Inverse Consequences

Monday, March 27, 2023

Seattle’s Gun Tax: A Textbook Case on the Law of Inverse Consequences

The law of inverse or unintended consequences refers to outcomes that are the reverse of the planned or expected results. As described in another context, “the law of unintended consequences could create a perverse effect contrary to what was originally intended and ultimately making the problem worse.”

Back in 2015, Pete Holmes, the then City Attorney, wrote about Seattle’s “inventive” new way to address violent crime. “In a Seattle summer marred by random gunfire, the City Council unanimously approved, and Mayor Ed Murray signed, the ordinance that, come January [2016], will levy a $25 tax on businesses for each firearm sold at retail within City limits to provide a sustained local revenue source for research and prevention programs. In addition, the City will impose a 2-cent tax for every round of .22 caliber ammunition sold and a 5-cent tax for every other round of ammunition sold.” Describing this so-called “common sense step designed to reduce gun violence,” Holmes said, “This City acted to control its own destiny.”

At the time the ordinance was passed, the City Budget Office estimated that the gun tax would generate revenue of “between $300,000 and $500,000 a year.”

Seattle Police Department data on crime shows there were 3,830 violent crime incidents in 2015, of which 26 were homicides. Violent crime incidents have increased each year since, reaching 5,630 in 2022 (including 52 homicides). The department’s most recent  annual report reveals that Seattle’s overall violent crime rate reached a 15-year high in 2022, with homicides up by 24% and aggravated assaults (including shots fired and non-fatal shootings) “continu[ing] to be the highest reported in the last 10 years.”

Analyzing the numbers for shootings and shots fired specifically, police data for 2015 indicates there were 54 “shots fired” incidents, 16 shootings (nonfatal) and no shooting fatalities. By 2022, this had climbed to 79 “shots fired” incidents, 34 non-fatal shootings, and six “fatal injury” shootings. So far, 2023 looks to be at least as violent, with 84 “shots fired” incidents, 15 non-fatal injury shootings, and four fatalities already, a scant three months into the year.

Residents who may have looked to console themselves with what, by now, was supposed to be a multi-million dollar stash of cash generated by the gun tax for prevention programs were in for another rude shock. According to one source, the first full year of gun tax collection yielded just $103,766, with $93,220 collected for 2017, $77,518 in 2018, and $85,352 in 2019 – a  four-year total that failed to reach the midpoint, even, of the city’s predicted revenue for a single year.

To get the real financial impact of the gun tax, though, Seattle’s extreme overestimates have to be viewed in the larger context of actual lost revenues. At the time the gun tax was proposed, the proprietor of one of Seattle’s gun stores described what he called the city’s “grossly unsound” reasoning and revenue projections. Seattle, he added, had only two dedicated gun stores, plus a few big box sporting goods stores and pawnshops, but had “plenty more” located a short way out of the city. Rather than “just tighten the belt and hand over the money,” consumers would shop elsewhere and “Seattle gun stores would simply go out of business.” The result? No gun tax income and the city would lose the sales tax, other revenue and jobs the businesses had been generating until then. In his case – because he moved his business to the suburbs outside Seattle when the gun tax was passed – Seattle lost close to $64,000 in sales taxes that his business paid in his new location in 2017.

Another large gun retailer, the owner of Seattle’s Outdoor Emporium, was interviewed in late 2016 and blamed the gun tax for his “$2 million hit” in lost sales, a 32% drop in his customer count, and an estimated $600,000 loss of potential sales tax due to his plummeting sales.

If these figures are accurate, Seattle accomplished the unbelievable financial equivalent of cutting off its nose to spite its face by collecting, in 2016, a little over $100K in gun tax revenue but losing at least seven times as much in sales tax dollars alone. Driving these figures even further into the red, in 2017 the city reportedly spent more on defending a failed lawsuit on the tax (over its refusal to disclose the 2016 revenue collected) than it obtained that year in total gun tax income.    

It’s not just a case of the usual wonky progressive math. Civic politicians have hurt city taxpayers, to be sure, but taking “control” of the city’s destiny with this “inventive” ordinance has correlated with violent crime rates reaching record highs. The same ordinance has created an uncompetitive business climate for gun retailers, so residents who need the means to protect themselves and their families from the burgeoning crime wave are forced to go outside Seattle. Even apart from the gigantic question mark on how the gun tax revenues have been spent and to what end, it’s difficult to interpret these outcomes as anything other than a complete and dismal failure.

IN THIS ARTICLE
Washington Gun Tax Seattle
TRENDING NOW
Nancy Pelosi: Pro-Gun Voters Made an Impact

News  

Monday, November 18, 2024

Nancy Pelosi: Pro-Gun Voters Made an Impact

Congratulations NRA members and other pro-gun voters! Once again, our votes helped make the difference.

Bloomberg’s Mayors, Back in the News!

News  

Monday, November 18, 2024

Bloomberg’s Mayors, Back in the News!

Just a few short weeks ago, we wrote about Michael Bloomberg’s controversy-dogged gun control organization, Mayors Against Illegal Guns (MAIG), and how another high-ranking member of the group had been indicted for allegedly committing serious ...

Make Crime Illegal Again

News  

Monday, November 18, 2024

Make Crime Illegal Again

While less prominent than the red sweep of the nation’s electoral map and the triumph of President Donald Trump, another telling development following the 2024 elections was the number of Californians in ultra-progressive strongholds who ...

Federal District Court Strikes Down IL’s “Assault Weapon” and “Large-Capacity Magazine” Bans in NRA-Supported Case

Saturday, November 9, 2024

Federal District Court Strikes Down IL’s “Assault Weapon” and “Large-Capacity Magazine” Bans in NRA-Supported Case

Today, the U.S. District Court for the Southern District of Illinois struck down provisions of the Protect Illinois Communities Act (PICA) that prohibit “assault weapons” and “large-capacity magazines” in an NRA-supported case, Barnett v. Raoul.

NRA Files Amicus Brief Arguing that Washington’s Magazine Ban Violates the Second Amendment

Friday, November 15, 2024

NRA Files Amicus Brief Arguing that Washington’s Magazine Ban Violates the Second Amendment

Today, NRA filed an amicus brief in the Supreme Court of the State of Washington in a challenge to Washington’s prohibition on magazines that hold over 10 rounds.

Michigan: Take Action Against "Gun-Free Zone" Bills Today!

Friday, November 15, 2024

Michigan: Take Action Against "Gun-Free Zone" Bills Today!

Yesterday, the Senate Committee on Civil Rights, Judiciary, and Public Safety SB 857 and SB 858 with amendments and the bills will now be eligible for votes on the Senate floor. Please use the take action button below and ...

Grassroots Spotlight: North Carolina Grassroots

Take Action  

Monday, November 18, 2024

Grassroots Spotlight: North Carolina Grassroots

The North Carolina NRA-ILA Grassroots Team recently held an NRA “Day of Action” event to coincide with the start of early voting in the Tarheel State, and to encourage our Second Amendment community to “Get Out and Vote”!

Michigan: House of Representatives to Take Important Vote on Anti-Gun Bills

Tuesday, November 12, 2024

Michigan: House of Representatives to Take Important Vote on Anti-Gun Bills

Tomorrow, the Michigan House of Representatives is expected to vote on two packages of anti-gun bills. Use the take action button below to contact your Representative and urge them to oppose these anti-gun bills!  

PREFILING OF LEGISLATION BEGINS IN TEXAS FOR THE 2025 SESSION

Friday, November 15, 2024

PREFILING OF LEGISLATION BEGINS IN TEXAS FOR THE 2025 SESSION

Prefiling of legislation for the 2025 Regular Session of the Texas Legislature began on Tuesday.  Within the first three days, more than 75 firearm-related bills had been filed, the majority of which were anti-gun measures ...

Michigan: Senate Committee to Vote on Expanding Gun-Free Zones

Tuesday, November 12, 2024

Michigan: Senate Committee to Vote on Expanding Gun-Free Zones

Tomorrow, the Senate Committee on Civil Rights, Judiciary, and Public Safety will take up SB 857 and SB 858. These bills would dramatically expand “gun-free zones” in the state and drastically limit where those with a concealed pistol ...

MORE TRENDING +
LESS TRENDING -

More Like This From Around The NRA

NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.