Seattle's city council is backing off the so-called "Amazon tax," dubbed by critics as a "tax on jobs."

Reporting on "America's Newsroom," Fox News correspondent Dan Springer called it a "stunning reversal" for the city after a new group called Speak Out Seattle spearheaded opposition to the bill, gathering more than 45,000 signatures to add a ballot referendum this fall.

The "head tax" on the city's largest businesses was supposed to go toward the city's efforts to combat homelessness.


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"The council may have realized they were headed for a spectacular defeat this fall," Springer explained, adding that some voters see the council as losing touch with them.

All but two city council members said they will vote to repeal the measure after it passed unanimously May 14 and was signed by the mayor.

A socialist council member, who still supports the tax, accused Amazon, Starbucks and other big businesses of spreading "blatant lies" to influence public opinion. 

Critics said the tax would have pressured businesses, such as Amazon, one of the largest employers in Seattle, to cut costs and potentially eliminate jobs. The company threatened to stop construction on a new office tower if the tax was imposed.

The council will now be looking at alternative measures to tackle the homeless crisis. Only L.A. and New York City have larger homeless populations than Washington state's largest city, Springer said. 

Watch the report above.


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