Seattle Democrat rejects wealth ‘exodus’ concerns as businesses flee for lower-tax states
The Seattle state lawmaker behind Washington’s newly introduced “millionaire’s tax” dismisses concerns that a large income tax increase would trigger a tax increase. migration of wealthy residents and businesses From the Pacific Northwest.
“The reality is that a millionaire tax is unlikely to result in businesses leaving,” said State Sen. Jamie Pedersen (D-Seattle). local FOX affiliate After the bill was signed.
Pedersen, the Senate Majority Leader who represents Washington’s 43rd Legislative District, argues there is no evidence that the tax recently signed into law by Gov. Bob Ferguson would redirect the state’s top earners to lower-tax areas like Florida or Texas.
“The drivers we hear about [businesses] They are concerned about sales tax on services [and] Property tax concerns. Pedersen said the legislature took action on both of those issues in the last session. “I have no indication that a millionaire’s tax will cause significant immigration.”
Starbucks Cuts Jobs in Seattle as Former CEO Howard Schultz Blases ‘Socialist’ Mayor
The legislation marks a jarring shift for a state that has historically prided itself on having no personal income tax. The bill, passed by the Democratic majority in the 2026 session, imposes a 9.9% tax on annual income exceeding $1 million for individuals or households.
Although the tax was signed in March 2026, it is not scheduled to go into effect until January 1, 2028, with the first payments due in 2029. The delay is intended to allow the state’s Department of Revenue to establish a collection infrastructure and to allow time for the inevitable wave of constitutional challenges to clear the courts.
Despite Pedersen’s optimism, the regional business environment is already showing signs of tension. Coffee giant Starbucks recently announced that it will shift 2,000 corporate jobs, primarily in IT and supply chain management, to a new regional headquarters in Nashville, Tennessee. While Starbucks maintains that it has not abandoned its Seattle roots, the move to a state with no personal income tax has raised fears of “tax evasion.”
Governor Abbott Extends Border for New York Billionaires Fleeing Mamdani’s Policies
Additionally, multiple local business owners said: FOX 13 Seattle they were forced to close their operations due to the state’s expanded retail sales tax on services. In response to this pressure, the legislature has recently moved to reduce these expansions and is expected to roll back some retail taxes within three years.
