Blab Business
Seattle Mayor Katie Wilson Dismisses Wealthy Exodus Narrative Amid Washingtons New Millionaires Tax
Seattle Mayor Katherine Barrett Wilson dismissed the idea that Washington’s new millionaires tax is prompting a mass exodus of wealthy residents and businesses. In a FOX 13 interview on Wednesday, the mayor said the concerns were "overblown," even as the 9.9 percent levy on household income above $1 million—Senate Bill 6346—has just been signed into law by Governor Bob Ferguson.
The bill, Washington’s first state income tax, will take effect on January 1, 2028, with the first returns due in 2029. Both chambers of the legislature approved the measure on March 12, 2026, and Ferguson publicly endorsed it. Revenue from the tax is earmarked for education, health care and other public services.
When FOX 13 co‑anchor Hana Kim asked whether the narrative that wealthy Washington residents are leaving because of the new tax was still "overblown," Wilson chuckled and confirmed her belief that the claims of a large exodus are exaggerated. "I do believe that," she said. "When I think about the last five months and the things that I and my administration have done to build bridges with the business community, the narrative that was spun around those things is very, very out of step with the reality."
Wilson pointed to recent corporate pledges as evidence of her partnership approach. Starbucks, T‑Mobile and Microsoft have all committed funds for a 90‑unit tiny‑house village in South Park Cloverleaf, slated to open later this summer. "So this narrative that it’s like Seattle socialist mayor versus Starbucks, well, why are they donating a million dollars to our shelter site?" she asked.
The mayor emphasized that collaboration with business is a priority, noting that "we’re not going to agree on everything, right?" Wilson said.
A recent survey by the Association of Washington Business, reported by The Center Square, found that 44 percent of business leaders say they are considering moving their personal residence out of state. The survey also indicated that businesses are more than twice as likely to expand outside Washington than within it. While some leaders are contemplating relocation, the overall picture is more nuanced.
Washington has long operated without a state income tax, relying instead on a 7 percent capital‑gains tax on profits from the sale of personal long‑term capital assets. That tax has historically funded school construction and early‑learning programs. The millionaires tax seeks to broaden the revenue base, with proponents arguing it will raise significant funds for public services without imposing a new tax on the majority of residents.
Opponents—including some conservative lawmakers—have warned that the tax could drive high‑income residents and businesses to relocate. Wilson’s remarks aim to counter that narrative.
Fox News Digital reached out for comment after the interview, but no immediate response was received.
Since the tax’s passage, Washington’s political landscape has shifted. The legislature, dominated by Democrats, has moved forward with other progressive measures, while the governor’s office has emphasized the need for balanced fiscal policy.
The millionaires tax will become effective in 2028, giving businesses and individuals time to adjust. Washington’s business community remains divided, with some firms pledging support for local initiatives while others weigh relocation options.
The debate over the tax’s impact will likely intensify as the state moves closer to the implementation date. Policymakers, businesses and residents will continue to monitor how the new revenue stream affects public services and the broader economy.
Under Mayor Wilson’s leadership, Seattle has pursued a mix of progressive policies and business engagement. Her recent statements reflect an effort to reassure stakeholders that the city’s fiscal policies are not intended to drive out wealth but to fund public services.
The millionaires tax’s long‑term effects on Washington’s economy, workforce and public services remain to be seen. Stakeholders will watch how the tax’s revenue is allocated and whether it influences business decisions about expansion and relocation.
The next significant milestone will be the first tax returns filed in 2029, which will provide concrete data on the tax’s revenue and its impact on Washington’s fiscal health.
The debate over Washington’s new millionaires tax underscores broader national discussions about progressive taxation and its role in funding public services.
As Washington moves forward, the city’s leadership and business community will need to navigate the balance between fiscal responsibility and economic competitiveness. The city’s approach to the millionaires tax, combined with its ongoing investment in community projects such as the tiny‑house village, will shape Seattle’s economic trajectory in the coming years.
The outcome of Washington’s millionaires tax will be closely watched by policymakers, businesses and residents alike, as it represents a significant shift in the state’s tax policy and public finance strategy.
The bill, Washington’s first state income tax, will take effect on January 1, 2028, with the first returns due in 2029. Both chambers of the legislature approved the measure on March 12, 2026, and Ferguson publicly endorsed it. Revenue from the tax is earmarked for education, health care and other public services.
When FOX 13 co‑anchor Hana Kim asked whether the narrative that wealthy Washington residents are leaving because of the new tax was still "overblown," Wilson chuckled and confirmed her belief that the claims of a large exodus are exaggerated. "I do believe that," she said. "When I think about the last five months and the things that I and my administration have done to build bridges with the business community, the narrative that was spun around those things is very, very out of step with the reality."
Wilson pointed to recent corporate pledges as evidence of her partnership approach. Starbucks, T‑Mobile and Microsoft have all committed funds for a 90‑unit tiny‑house village in South Park Cloverleaf, slated to open later this summer. "So this narrative that it’s like Seattle socialist mayor versus Starbucks, well, why are they donating a million dollars to our shelter site?" she asked.
The mayor emphasized that collaboration with business is a priority, noting that "we’re not going to agree on everything, right?" Wilson said.
A recent survey by the Association of Washington Business, reported by The Center Square, found that 44 percent of business leaders say they are considering moving their personal residence out of state. The survey also indicated that businesses are more than twice as likely to expand outside Washington than within it. While some leaders are contemplating relocation, the overall picture is more nuanced.
Washington has long operated without a state income tax, relying instead on a 7 percent capital‑gains tax on profits from the sale of personal long‑term capital assets. That tax has historically funded school construction and early‑learning programs. The millionaires tax seeks to broaden the revenue base, with proponents arguing it will raise significant funds for public services without imposing a new tax on the majority of residents.
Opponents—including some conservative lawmakers—have warned that the tax could drive high‑income residents and businesses to relocate. Wilson’s remarks aim to counter that narrative.
Fox News Digital reached out for comment after the interview, but no immediate response was received.
Since the tax’s passage, Washington’s political landscape has shifted. The legislature, dominated by Democrats, has moved forward with other progressive measures, while the governor’s office has emphasized the need for balanced fiscal policy.
The millionaires tax will become effective in 2028, giving businesses and individuals time to adjust. Washington’s business community remains divided, with some firms pledging support for local initiatives while others weigh relocation options.
The debate over the tax’s impact will likely intensify as the state moves closer to the implementation date. Policymakers, businesses and residents will continue to monitor how the new revenue stream affects public services and the broader economy.
Under Mayor Wilson’s leadership, Seattle has pursued a mix of progressive policies and business engagement. Her recent statements reflect an effort to reassure stakeholders that the city’s fiscal policies are not intended to drive out wealth but to fund public services.
The millionaires tax’s long‑term effects on Washington’s economy, workforce and public services remain to be seen. Stakeholders will watch how the tax’s revenue is allocated and whether it influences business decisions about expansion and relocation.
The next significant milestone will be the first tax returns filed in 2029, which will provide concrete data on the tax’s revenue and its impact on Washington’s fiscal health.
The debate over Washington’s new millionaires tax underscores broader national discussions about progressive taxation and its role in funding public services.
As Washington moves forward, the city’s leadership and business community will need to navigate the balance between fiscal responsibility and economic competitiveness. The city’s approach to the millionaires tax, combined with its ongoing investment in community projects such as the tiny‑house village, will shape Seattle’s economic trajectory in the coming years.
The outcome of Washington’s millionaires tax will be closely watched by policymakers, businesses and residents alike, as it represents a significant shift in the state’s tax policy and public finance strategy.
