Seattle Mayor Katie Wilson Laughs Off Millionaires Leaving Over New State Tax

Seattle Mayor Katie Wilson told a cheering crowd at Seattle University earlier in May that claims millionaires will leave Washington state over a new income tax are overblown. "I think the claims that millionaires are going to leave our state are like super overblown," she said with a laugh. "And the ones that leave, like, bye."

The remarks came after Gov. Bob Ferguson signed the state's first income tax into law on March 30. The 9.9% levy applies to household income exceeding $1 million, effective 2028. Democrats described it as a "millionaire’s tax."

Washington's constitution has prohibited a progressive income tax since 1933. The state Supreme Court ruled in Culliton v. Chase that income is property and must be taxed uniformly at no more than 1%. Public records show Senate Majority Leader Jamie Pedersen, the bill's sponsor, sought to force the court to reconsider that caselaw. In an August email, Pedersen wrote he wanted to overturn Culliton and asked Solicitor General Noah Purcell for comments on the draft bill to achieve that.

Attorney General’s Office Senior Counsel Chuck Zalesky wrote that the legislative goal was to have the Supreme Court overturn Culliton v. Chase.

Seattle already has a capital gains tax, a Business and Occupation tax on gross revenue, a combined sales tax rate of 10.35% and a 5% payroll tax on employer compensation exceeding $1 million per employee annually for social housing. A leaked Zoom meeting showed a Democrat lawmaker seeming to admit plans to extend the income tax to all Washingtonians.

Departures followed. Starbucks founder Howard Schultz announced a move to Florida. Amazon's Jeff Bezos left for Florida in 2023 after the capital gains tax started. Starbucks said it will invest $100 million and add 2,000 jobs in Nashville, Tennessee. Seattle could lose up to $750 million in tax revenue.

Wilson, a self-described democratic socialist, campaigned on government-run grocery stores, progressive taxation and criticism of business. After her election, she joined picket lines against Starbucks and urged a boycott. She told the audience, "Being a progressive doesn't necessarily mean that we keep layering on spending, and we never stop doing things."