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Agree with your point but the 10% discount for Seattle is super easy to justify: no state sales tax. So there's no cost of living adjustment for Seattle, just an equalization due to the tax situation.

Why should the benefactor of the state's tax policy for employees be the company and not the employee?

because the powerful party is more powerful

Income tax, you mean.

Tax is certainly one part of the cost of living. The cost of living is just that, the cost of living, not simply the consumer price index or whatnot.

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