The Washington State House passed new legislation on Tuesday to saddle the state’s highest earners with a hefty 9.9% income tax. The bill passed by a vote of 51-46, with all but eight Democrats supporting – and every Republican opposing – the so-called “millionaires’ tax.”
Under Senate Bill 6346, the new tax rate would be applied to annual income over $1 million beginning in 2029. Governor Bob Ferguson, who celebrated with state House Democrats and is awaiting confirmation by the state Senate, has vowed to sign the bill into law, calling the vote “truly historic.” Ferguson may be right, in a sense – it could be historically bad. High earners such as Starbucks’ former CEO Howard Schultz are already leaving the Evergreen State, and Washington’s wealth tax is expected to spur a broader exodus.
No Income Tax: Ever Greener Pastures
On the same day that the House passed the new income tax, Schultz – who is worth $6.6 billion, according to Bloomberg – announced in a LinkedIn post that he and his wife have moved to Miami, Florida. The billionaire praised the Pacific Northwest, while avoiding any direct mention of the steep new tax. He acknowledged the state of business in Washington, saying he hopes it “will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas.”
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