Tax on excessive compensation?

Seattle passed a law that imposes a nondeductible 5% payroll tax on “excess compensation” paid to an employee retroactive to January 1, 2025. Excess compensation means wages, bonuses, severance payments, and certain other payments that exceed $1 million. It’s not restricted to employees; it also applies to LLC members, partners, and even sole proprietors. The expected revenue from this new employer tax is intended to help social housing (publicly-owned housing). Will other localities enact similar measures as a revenue raiser? #IdeaoftheDay