Image Credentials: Image Title: Exodus of the Elite: Billionaires Flee Seattle as Washington Advances “Millionaires Tax” Source: (sora.openai) Date: March 2026. Attribution: This image was created using AI-generated imagery (sora.openai) and does not depict a real-world scene.
By Open Chronicle Staff with Agencies
OLYMPIA — Washington State’s long-standing status as a tax haven for the ultra-wealthy is reaching a historic breaking point. On March 11, 2026, the Washington State House approved a landmark 9.9% “Millionaires Tax” on personal earnings over $1 million, a move that critics say is already triggering a high-profile exodus of the state’s most famous business titans.
The bill, which now moves to the Senate, represents a fundamental shift in Washington’s tax structure—one of only nine states without a personal income tax. Governor Bob Ferguson has pledged to sign the legislation, which is projected to generate $3.7 billion annually.
NEW INFORMATION: State House in Olympia passes millionaires tax proposal 52-46 after day-long debate.
As our @JackieKentNews reports, the proposal now heads to the Senate for final approval before heading to Governor Bob Ferguson's desk. Ferguson has said – he plans to sign in. pic.twitter.com/DuLDDejUUh
— Steve McCarron KOMO (@SteveTVNews) March 11, 2026
The Schultz Departure
In a move that mirrors Jeff Bezos’s 2023 relocation, former Starbucks CEO Howard Schultz announced this week that he and his wife, Sheri, are moving their primary residence from Seattle to Miami. While Schultz’s public statement focused on Florida’s climate and “thriving entrepreneurship,” the timing coincided perfectly with the House’s approval of the tax bill.
For Schultz, whose net worth is estimated at $3.5 billion, the move to Florida, which lacks a state income tax, could result in tens of millions of dollars in annual savings.
JUST NOW:
The Senate has concurred with the House amendments to the income tax, and simultaneously voted to pass the bill. thereby sending it to @GovBobFerguson’s desk for his signature.
It is a dark day for Washington state. pic.twitter.com/Wr8zxak79d
— Anthony Mixer (@AnthonyMixerWA) March 12, 2026
Rebalancing the “Most Unfair” System
Governor Ferguson has framed the tax as a necessary “rebalancing” of what has historically been ranked as the most regressive tax system in the United States.
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The Current Gap: Washington families in the bottom 20% currently pay roughly 13.8% of their income in various taxes (sales, property, B&O), while the top 1% pay just 4.1%.
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The New Threshold: The 9.9% levy applies only to income above the $1 million mark, affecting less than 0.5% of the state’s population.
Where the Money Goes
To secure the Governor’s support, the bill was amended to include several “affordability” provisions designed to return revenue to the working class:
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Free School Meals: Funding for universal free breakfast and lunch for all Washington students.
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Tax Credit Expansion: Broadening eligibility for the Working Families Tax Credit to an additional 460,000 households.
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Small Business Relief: Zeroing out the Business & Occupation (B&O) tax for small businesses earning under $1 million in revenue.
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Childcare Investment: Allocating 5% of the tax revenue to the “Fair Start for Kids Account.”
The “Bezos Effect” and Constitutional Challenges
The bill faces significant headwinds. Opponents point to Jeff Bezos, whose 2023 move to Florida allegedly saved him over $600 million in potential capital gains taxes alone. Legal experts warn that the Millionaires Tax will likely face immediate constitutional challenges, as Washington’s constitution historically treats “income” as property, which must be taxed uniformly at a rate no higher than 1%.
If the Senate passes the bill before the legislative session ends on March 12, Washington will enter a new era of fiscal policy, one that prioritizes social services but risks losing the very billionaires who have anchored the Seattle economy for decades.