Washington State lawmakers have approved a new tax targeting high-income earners, a move that immediately reignited the national debate over whether wealth taxes drive wealthy residents and businesses to relocate.
After more than 24 hours of debate, the Washington State House passed Senate Bill 6346 by a vote of 51–46. The measure imposes a new 9.9% tax on individuals earning more than $1 million annually. If implemented as planned, the tax will take effect beginning in 2028, with the first payments due in 2029.
Supporters of the legislation argue the policy is designed to raise revenue for public services and address economic inequality. Critics, however, warn that such taxes could encourage high earners and major employers to move to states with more favorable tax environments.
Within hours of the bill’s passage, former Starbucks CEO and founder Howard Schultz announced that he and his wife had relocated to Florida. In a social media message, Schultz reflected on the early years of building Starbucks in Seattle before explaining that he and his family had entered a new phase of life.
“Forty-four years ago, Sheri and I made the cross-country trip from NYC to Seattle in our 1979 Audi along with Jonas our Golden Retriever. We were starting a new life,” Schultz wrote.
He then revealed that the couple had moved to Miami, saying they were enjoying “the sunshine of South Florida” and being closer to family on the East Coast.
The timing of the announcement drew attention because Florida has no state income tax, making it an attractive destination for high earners compared with states considering new wealth taxes.
At the same time, Starbucks itself has begun expanding its corporate footprint outside Washington State. The company recently announced plans to open a corporate office in Nashville, Tennessee—another state without a personal income tax.
According to reporting from The Wall Street Journal, Starbucks plans to offer relocation opportunities for some Seattle-based employees while gradually creating additional positions in the Nashville office over time.
While the company has not announced any plans to move its headquarters out of Seattle, corporate expansions into lower-tax states often fuel speculation about longer-term relocation strategies. Large corporations typically shift operations gradually rather than making abrupt headquarters moves due to the logistical complexity and cost involved.
