SAN FRANCISCO: Amazon.com Inc. said it has halted planning for a new office building in Seattle and might sub-lease rather than occupy another future tower downtown, pending a city council vote on a proposed tax on top businesses.
Amazon’s decision puts a question mark on more than 7,000 new jobs at those buildings that council members might be loath to cost the city. Construction work and other businesses that would have catered to the world’s largest online retailer could be at risk too.
“Pending the outcome of the head tax vote by City Council, Amazon has paused all construction planning on our Block 18 project in downtown Seattle and is evaluating options to sub-lease all space in our recently leased Rainer Square building,” Amazon’s Vice President Drew Herdener said in a statement.
The council is scheduled to vote on the proposal on May 14.
“I’m deeply concerned about the impact this (Amazon’s)decision will have on a large range of jobs,” the Seattle Times quoted Mayor Jenny Durkan as saying on Wednesday.
Durkan’s office did not immediately respond to a Reuters request for comment.
Amazon’s rapid growth has transformed Seattle’s South Lake Union district, replacing warehouses and parking lots with offices towers, highly paid tech workers and expensive eateries. The growth has contributed to an economic boom and rising rents.
Communities across North America are vying for a similar investment from Amazon. Amazon has said it will spend more than $5 billion and create up to 50,000 jobs in the city it chooses for its second headquarters, to be announced this year.
Seattle City Council in April proposed a tax plan affecting the city’s roughly 500 largest businesses.
The proposal, an employee hours tax that would transition to a payroll tax in 2021, would generate $75 million per year for Seattle, most of which would go to building affordable housing.
The efficacy of the specific proposal is unclear.
Seattle has almost doubled its funding for affordable housing and homeless services programs since 2013 to $63 million per year, according to the report in the Seattle Times.
Amazon halts plan for office tower in Seattle over proposed tax
Amazon halts plan for office tower in Seattle over proposed tax
Kuwait forecasts 54.7% rise in fiscal deficit as oil revenues weaken
JEDDAH: Kuwait expects its fiscal deficit to widen sharply in the 2026–2027 budget year as lower oil income weighs on public finances, with the shortfall projected to rise 54.7 percent to 9.8 billion dinars ($31.9 billion).
Announcing the draft budget, Finance Minister Yaqoub Al-Refaei estimated total expected revenues at 16.3 billion dinars, marking a 10.5 percent decline compared with the previous fiscal year.
Kuwait is pushing Vision 2035 reforms to diversify its economy and boost non-oil growth but remains exposed to oil price volatility despite moderate inflation and strong non-oil expansion.
“The minister disclosed that oil revenues were budgeted at 12.8 billion dinars, a 16.3 percent contraction compared to the current budget ending March 31, 2026,” the Kuwait News Agency, known as KUNA, reported.
Highlighting a positive trend for fiscal diversification, non-oil revenues are projected to rise 19.6 percent to 3.5 billion dinars.
He noted that total expenditure is expected to reach 26.1 billion dinars, with salaries and subsidies accounting for 76 percent, capital spending 11.8 percent, and other expenditures 12.2 percent. The FY 2026–2027 budget is based on a conservative oil price estimate of $57 per barrel.
The minister, however, stressed that Kuwait’s fiscal break-even price — the price needed to balance the budget — is significantly higher, at $90.5 per barrel.
The draft budget, covering April 1, 2026, to March 31, 2027, includes capital spending of 3.1 billion dinars, with significant allocations for infrastructure and strategic projects, according to a release by the Ministry of Finance.
Of this, 318 million dinars will fund the Ministry of Public Works for developments such as Mubarak Al-Kabeer Port, the Umm Al-Hayman plant expansion, the North Kabd station, and the expansion of Kuwait International Airport’s Terminal 2.
Additional allocations support the health ministry’s cancer control center, as well as the Defense and Interior ministries for military equipment.
Higher spending is also driven by a 741.2 million-dinar increase in the public treasury’s contribution to social insurance to cover pension fund deficits.
Conversely, support for fuel used in power generation and refined products declined by 449.2 million dinars due to falling global oil prices.
The ministry highlighted that the budget would create 14,518 new positions, reflecting efforts to boost employment while continuing to diversify revenue sources.
