Washington AI Founder Jesse Proudman Leaving State Over New Millionaire Tax

A prominent Washington tech entrepreneur is leaving the state, blaming a new "millionaire tax" for a sharp decline in its business climate.

Jesse Proudman, founder and CTO of the privacy-focused generative AI platform Venice.ai, told Fox News Digital on Tuesday that Washington, once a "startup sanctuary," has turned hostile to the entrepreneurs who drive its economy.

"I started three companies here in the state. I have been an entrepreneur my whole life here," Proudman said. "The business climate when I started my first company was very entrepreneurial-friendly, and the startup community was looked upon as a contributing member of the city. Over the last number of years, that has changed dramatically."

Proudman previously founded the private cloud company Blue Box and the crypto-investing platform Makara. He now serves as a spokesperson for Let's Go Washington, a political committee leading a signature drive to repeal the tax.

The Democratic-controlled legislature passed the tax during the 2026 session. Gov. Bob Ferguson signed it into law in March. It imposes a 9.9% levy on annual income exceeding $1 million and takes effect Jan. 1, 2028, with first payments due in 2029.

"We have until July 2nd to gather about 325,000 signatures to put this on the November ballot," said Hallie Herzberg, director of communications for Let's Go Washington. "The people deserve the right to vote on this. It’s already driving businesses, employers, and families out of the state."

Washington has long been among the few states without a personal income tax. A 2023 state Supreme Court ruling upheld a 7% capital gains tax, paving the way for income-based levies that critics say violate the state constitution's uniform taxation requirement for property, which includes income.

State Sen. Jamie Pedersen, a Democrat from Seattle and the bill's main sponsor, rejected claims of tax flight. "The reality is the millionaire tax is not likely to result in businesses leaving," he told a local Fox affiliate after the signing. He later told Fox News Digital there is "no evidence" that high earners will move to places like Florida or Texas.

Data from the Association of Washington Business tells a different story. A survey reported by The Center Square showed 44% of state business leaders considering a move of their personal residences. Washington businesses are now more than twice as likely to expand out of state as within it.

Proudman plans to shift his life and business to Austin, Texas. "It's no longer a friendly place to conduct business," he said. "Startup companies are being villainized. With the passing of this tax, we have looked at alternative places to move, and we'll probably end up in Austin."

Proudman said the tax, pitched as a "millionaire’s tax," targets a mobile group. As they leave, he warned, the burden will fall on everyone and worsen Washington's already poor tax standing at 45th in the nation. He called it a constitutionally illegal tax that will apply to all.

Pedersen’s office did not respond to Fox News Digital's latest request for comment.