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.”
Schultz says he has entered the “retirement phase” of his life, but the company he helped build, Starbucks, is also making moves outside of the Evergreen State. After more than 900 layoffs last year and being forced to close multiple Seattle locations due to safety concerns and financial issues, the coffee giant is opening a new corporate office in Nashville. Tennessee is one of eight states that don’t have an income tax.
Schultz’s revelation came as Democrat state Rep. Natasha Hill insisted during a House debate that wealthy residents wouldn’t leave Washington if the bill became law: “The truth is, millionaires would pay more in other states, Madam Speaker. ... This only applies to 0.25% of Washington’s population, meaning 99.75% are not going to be paying this tax.”
State Rep. Drew Stokesbary (R-Auburn) said Schultz’s decision to leave the state was “no doubt … connected” to the proposed tax. “Howard Schultz is a smart man,” he added.
Florida or Bust
Schultz isn’t the only billionaire who has left Washington in recent years. In 2023, Jeff Bezos, founder of Amazon, announced he was leaving Seattle for, wouldn’t you know it, Miami.
So, what’s drawing the ultra-rich to the Sunshine State? Well, for one, Florida doesn’t have an income tax. Last year, a Henley & Partners World’s Wealthiest Cities Report explained that Miami was one of two South Florida cities – the other being West Palm Beach – to outdo New York City as the fastest-growing wealth hubs in the world.
"I'm not at all surprised that multimillionaires are fleeing blue states and heading towards South Florida markets like West Palm Beach, Miami, Palm Beach. [They] are the recipients of people who are upset with the politics and taxes of the states that they are migrating from," Dina Goldentayer, real estate giant Douglas Elliman’s top agent, told Fox News Digital.
Other blue states, such as Illinois and California, are also discussing a wealth tax – but as affluent residents increasingly flee to income-tax-free states, they may want to reconsider those plans.
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