Seattle’s Socialist Mayor Laughs at Wealthy Residents Leaving To Escape High Taxes
Seattle’s socialist Mayor Katie Wilson has a message for prosperous people who are leaving Washington because of the state’s rising tax burden. “Bye!” he says, laughing to the cheers of a largely progressive audience. Entrepreneurs and investors will definitely take this comment into consideration when considering where to live and do business. We can be sure of this fact because recent research further supports the common-sense idea that people often leave high-tax states in search of lower tax bills.
Wilson’s comments came after a while April 16 debate on “New Progressives” as part of Seattle University’s Conversations series. Wilson and King County Executive Girmay Zahilay answered a series of questions from host Joni Balter and graduate student Ari Winter.
When asked about major companies leaving or threatening to leave because of Seattle and Washington’s rising tax burden, Zahilay acknowledged that “everything is a trade-off,” adding, “of course I think taxes can make companies decide whether to stay or leave.” You don’t necessarily want to live by his policies, but he seems to know that his decisions could drive people out and impose costs on the community.
Wilson is a self-described “socialist“, presented with a follow-up question by Winter. He was asked: “Do you still think progressive taxes are an easy and promising solution?”
Wilson said it was “very, very exciting to see the billionaire tax pass the legislature” and cited his history of advocating for higher taxes. He then got to the heart of his answer.
“I think the claims that millionaires will leave our state are greatly exaggerated. And if they do, bye-bye!” he said waving and giggling.. The audience participated in the university event with enthusiasm and applause.
Wilson might want to rehearse his farewell. Fisher Investments Moved from Washington to Texas to avoid a new capital gains tax. Starbucks Establishing a corporate headquarters in Tennessee and moving business therelargely due to tax concerns. Billionaire Jeff Bezos also fled the state to Florida due to the effects of taxes.
“Jeff Bezos sold nearly $15 billion in stock before the new law took effect, potentially saving over $1 billion in taxes,” said Chris Corry of the Center for Washington Policy. noted. “Moving his primary residence to Florida will ensure that future stock sales are not subject to excise taxes.”
Technology giant Microsoft He criticized Washington’s tax environment And Threatened to move business elsewhere.
On top of an already high burden, including those recently adopted capital gains taxWashington Governor Bob Ferguson in March signed A “millionaire tax” that imposes a 9.9 percent tax on income over $1 million. These harsh taxes are increasing; especially when socialists create policy for a major city. Tax Foundation before the final tax comes into effect warned “The 9.9 percent ‘millionaire tax’ proposed in Washington would provide an 18.037 percent cap rate on wage income and restricted stock units (RSUs) in Seattle, which would be the highest rate in the country,” he said. This is very painful. And people don’t need to stay there to be attacked. Historically, most people leave the country when taxes become too heavy.
“Analysis of the latest state-level migration data reveals an ongoing and pronounced domestic shift: Millions of Americans, along with significant income and economic activity, are moving from high-tax states to states with more competitive tax systems and lower overall costs of living,” said Abir Mandal of the Tax Foundation. reported last month.
Evaluating IRS data, Mandal noted that “states with no income tax or lower overall tax burden not only generated population growth but also attracted a disproportionate share of adjusted gross income. Florida generated a net AGI equivalent to roughly $184,771 per new resident. Texas, South Carolina, North Carolina, and Tennessee also recorded strong income inflows; net AGI per new resident generally ranged from $49,000 to $70,000.” He also found: “In contrast, high-tax states suffered significant AGI losses per capita leaving. California lost approximately $59,440 per capita, New York $62,633, New Jersey $85,562, Illinois $110,618, and Massachusetts $141,672.”
Interestingly, the county with the most tax returns between 2022 and 2023 was tax-hungry New York County (Manhattan). But it also lost $922 million in adjusted gross revenue; This means high-income people leaving and being replaced by those with less money to pay in taxes.
In general, population and money have shifted from high-tax states to lower-tax states.
This isn’t exactly a revelation. We’ve always known that taxes matter when people decide where to live or work. However, it is important to note that research continues to support the point that “certain segments of the labor market, particularly higher-income workers and occupations with little location-specific human capital, may be highly sensitive to taxes in location decisions.” 2020 article inside Journal of Economic Perspectives to create.
Although remote working and modern mobility encourage people to go where they feel happy, this is not a new phenomenon. A. 2024 article Traviss Cassidy, Mark Dincecco, and Ugo Antonio Troiano found that across the United States from 1900 to 2010, “the introduction of income taxes resulted in significant migration of middle- and high-income households to states without income taxes.”
The lesson the Tax Foundation’s Mandal summarizes is this: “States that maintain competitive, low-burden tax systems continue to attract population and revenue, while there is continued outflow from those with higher and more complex tax structures.”
Seattle’s Katie Wilson appears to be repeating New York Gov. Kathy Hochul’s mistake in 2022. invited Republicans will “get on a bus and go to Florida, where you belong.”
In March, he reduced to speculation perhaps New York officials should “go to Palm Beach and see who we can bring home because our tax base is eroding… I should look at the fact that we are competing with other states that have less tax burdens on their corporations and individuals.”
Hochul was motivated by politics rather than Wilson’s disdain for success, but the lesson is the same: If people are made to feel unwelcome or abused, they may leave. Heavy taxation is a very effective way to push people in the door.
Post Seattle’s Socialist Mayor Laughs at Wealthy Residents Leaving to Avoid High Taxes appeared for the first time reason.com.
