Ex-Washington Gov. Gregoire Criticizes Democrats Over Millionaires Tax and Estate Tax Hike

Former Washington Gov. Christine Gregoire criticized fellow Democrats in the state legislature over the recent millionaires tax and an estate tax increase.

Speaking at the Association of Washington Business 2026 Spring Summit on May 6, Gregoire, who served as governor from 2005 to 2013, said the legislature fails to grasp the impact of its economic policies. "No, I really don't," she replied when asked if lawmakers understand those effects, citing the estate tax. "I argued with some folks about the estate tax. We were the highest in the country, tied with Hawaii at 20%. We went to 35%. We're not just the highest. We're beyond the highest."

Washington raised its estate tax to 35%, but a bill passed in April rolled it back to 20% amid backlash. Gregoire pressed lawmakers on the fallout. "And I said now, you understand the consequences of this? Can I see your fiscal note? Because I'd like to help it. Because here's what you can expect. Those people are not homeless. They will not pay. They’re leaving. When they leave, they stop paying capital gains. When they leave, they stop giving significantly to philanthropy, which would otherwise be necessary by government. So you understand, do you see the consequences of what you’re doing? And the answer is no."

She also faulted Democratic state House members for lacking business experience in assessing taxes' effects on small businesses. "I would suggest to you, we don't really have an income problem," Gregoire said. "We have a spending problem, and we're answering it by stacking one more tax, one more rule, one more regulation. And the one thing that the business community doesn't need is that lack of predictability. That's how businesses grow, that's how they thrive. That's not healthy for our business community at all."

Fox News Digital sought comment from the Washington state legislature and Democratic caucus.

Democrats pushed the millionaires tax through during the 2026 session. It levies a 9.9% rate on annual income over $1 million for individuals or households. Gov. Jay Inslee signed it in March 2026, with collection starting Jan. 1, 2028, and first payments due in 2029.

Starbucks, which started in Seattle, said after the tax passed that it would move 2,000 corporate jobs to a new regional headquarters in Nashville, Tennessee.

The tax arrived as Seattle Mayor Katie Wilson, who calls herself a socialist, drew criticism for brushing off concerns about millionaires fleeing the state.