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The Washington millionaire tax is now law after clearing both chambers of the legislature, with the House passing it after more than 24 hours of debate. Senate Bill 6346 places a 9.9% tax on income above $1 million, and within hours of passage Starbucks founder Howard Schultz announced he was leaving for Florida.
Key Takeaways
- The bill passed the House by a vote of 51 in favor and 46 against.
- It applies a 9.9% tax on personal income above $1 million.
- It is expected to generate about $3.5 billion or more per year beginning in 2029.
- Republicans introduced dozens of amendments during an all-night session to stall the vote.
What is the Washington millionaire tax?
The Washington millionaire tax is a 9.9% levy on personal income over $1 million, created by Senate Bill 6346 and pitched by supporters as a way to bring fairness to a regressive tax code. It marks the first time in decades that state lawmakers have advanced a personal income tax aimed at high earners, in a state that has rejected such measures more than a dozen times as a constitutional violation.
An income tax, in this framing, is a tax the state has long promised it would never impose, which is why critics see the millionaire label as a door-opener rather than the endpoint.
Why do critics call it a slippery slope?
Because they expect it to widen. The core warning is that a tax sold as targeting only the wealthiest will, when the next budget gap arrives, be extended to the everyday earner. Washington was one of nine states without an income tax, and this measure is treated as the crack in that wall.
The revenue logic reinforces the fear. Lawmakers face an immediate budget gap of more than $2 billion and spending that critics call wildly out of control, with little appetite for cuts. When the top earners leave, the math points toward taxing whoever remains.
It’s millionaires today, everyone else tomorrow.
Is the Washington millionaire tax already driving people out?
The most visible case is Howard Schultz, worth a reported $3 billion, who announced his move to Florida a few hours after the bill passed. He is not alone: Jeff Bezos previously left for Florida too, and the argument is that mobile, high-income residents leave first because they can.
The personal angle here is a real estate broker preparing to move to Oklahoma City. The comparison is concrete: a median Bellevue home near $1.8 million versus roughly $250,000 in Oklahoma City, where the tradeoff of a 4.5% state income tax is easily offset by housing costs. That exodus theme runs through coverage of the carbon tax fueling corporate departures and the broader blue-state migration crisis.
How does Washington compare to red states?
The contrast is drawn sharply. Texas is cited with a large budget surplus and Oklahoma with a multi-billion-dollar surplus that has it discussing lowering its income tax, while Washington, Oregon, California, Illinois, and New York bleed residents and businesses. The claim is that states running fiscal surpluses tend to be Republican-led and are cutting taxes rather than raising them.
Washington’s direction is described as becoming a “mini California,” in a race to the bottom with Oregon and California. The tax burden is stacking: highest gas taxes in the country, high housing costs, and now an income tax on top. Similar dynamics appear in reporting on how one city’s per-employee tax is expected to drive its own exodus.
What happens next with SB 6346?
The measure is expected to face challenges in court and possibly as a ballot measure, since critics argue it violates the state constitution’s bar on an income tax. Even if this specific bill is turned down, the expectation is that something like it eventually passes given the makeup of the legislature. The fiscal picture behind it is detailed in reporting on why the 9.9% rate could damage the state economy.
Frequently Asked Questions
What vote passed the Washington millionaire tax?
The House passed it 51 in favor to 46 against, after more than 24 hours of debate and an all-night session.
How much revenue is it projected to raise?
About $3.5 billion or more each year, beginning in 2029, against an immediate state budget gap of more than $2 billion.
Could the tax be overturned?
Possibly. It is expected to face court challenges and a potential ballot measure because critics argue a personal income tax violates Washington’s constitution.
If a tax written only for millionaires tends to expand to everyone within a few years, do you trust this one to stay narrow, or is the slippery-slope warning right? Tell us what you think in the comments.
Related Coverage
- Washington Millionaire Tax: Why SB 6346’s 9.9% Rate Will Destroy the State Economy
- Seattle Tech Layoffs Accelerate as Washington Millionaire Tax Push Drives Business Exodus
- Washington State Losing Taxpayers Every 30 Minutes After $9.4 Billion Tax Hike Disaster
- Chicago’s $21 Per Employee Tax: How Brandon Johnson’s Business Exodus Policy Will Destroy the City
Full Episode Transcript
Read the full transcript of this episode
After more than 24 hours of heated debate, the house, a lot like me, is not afraid to pick a fight. It’s not afraid to throw down, as you have seen for the last 24 hours of uninterrupted Thunderdome. >> And we begin with big news out of Olympia. The so-called millionaires tax has now passed both chambers after clearing a vote in the house this evening. Today we are talking about Senate Bill 6346. >> Our tax code is broken. It’s millionaires today, everyone else tomorrow. >> Washington state is lying to you. So, for decades the pitch has been simple. Come to Washington, no income tax, keep what you earn, build a business, build a life, and the government will stay out of your paycheck.
>> This is not rocket science. When you target people for taxation, people who are able to leave will leave. That’s what’s happening not just in Washington state, but across the West Coast. You are seeing a mass exodus of wealth to the East Coast, to states like Tennessee and Texas and Florida. It’s the reason that, say, Amazon is here. It’s the reason that Microsoft is here. And it’s the reason that you might be here. But right now, in Olympia, the doors are locked, the cameras are rolling, and they are dismantling that promise brick by brick. >> You’re seeing businesses pick up and move their entire infrastructure, which costs hundreds of millions, if not billions, of dollars for some companies?
The bill passed with 51 votes in favor and 46 against. This follows a marathon debate on the controversial bill that would place a 9.9% tax on income over a million dollars for individuals or a couple in a household. Debate on the house floor lasted more than 24 hours, with lawmakers holding an all-night session as Republicans introduced dozens of amendments in an effort to stall final passage. They aren’t just coming, by the way, for the billionaires. They aren’t just coming for the ultra-wealthy. They’re opening a door that, once opened, never closes. Critics argue it violates the state constitution.
It would drive away businesses and jobs and opens the door for an income tax on all Washingtonians. This is not a tax on millionaires. This is a tax on all of us. It’s just a matter of when. But I’m deeply concerned that by changing our traditions and changing our taxes and changing our culture, we are going to chase the next revolution away. Nicely done, comrades of Washington state. You passed your millionaires tax. Way to go. Way to drive out business. Way to drive out wealthy people. Way to drive out all the business owners who actually create the tax revenue for all your ridiculous programs.
But let’s not dwell on that. Let’s just be really short-sided and focus on this is going to fund a lot of programs. Programs you already have. Programs that are already wildly funded that don’t need to be. Instead of Instead of just continually funding stuff, how about we cut some programs? How about we cut some of the just absolute nonsense that I podcast every day? Oh, we can’t do that, Shawn, cuz that that’s that’s fiscal responsibility. Oh, yeah. Okay. Well, that’s where we sit. This is This is probably one of the worst things that has happened in Washington state. I mean, we’ve just plethora of them happening at the moment.
And And it’s reason It’s reason people are leaving and it’s reason I’m leaving. This This This is some of the nonsense that is absolutely pushing people away that are reasonable, that can actually think for themselves, that have the foresight to think, Now, who’s that really going to impact? Well, on the front end, it’s going to impact anybody with money who has the ability to be mobile. Who’s a good example of that this week? A few hours after this stupid thing passed, Howard Schultz said, “Hey, Washington state, four decades it’s been great, but I got to go. I’m going to Florida with the rest of my billionaire buddies.” Now, Howard Schultz is only he’s only worth a measly $3 billion, but it was kind of indicative of okay, this is that slippery slope.
This is that slope of Washington Democrats who have zero foresight moving forward because they’re all about oh, we got to create incomes today. Now, I mean and and this and this stuff it’s all going in the wrong direction. You need to make cuts and you need to encourage business to flourish. And how you do that? You lower taxes, you create incentives, the way Washington state used to be. And now, we’re going down we’re just a mini California now. We are literally Washington state is literally in a race to to out out uh communist California and and Oregon. We’re we’re we’re in a race to the bottom.
And yet Democrat leadership can’t see it. They just can’t see it. Well, we need the mill- millionaires to pay their fair share. They already are, Seriously, they already are. They already are. And now, you’re going to push them out. How’s that going to work for you? How’s that going to work for the middle class? What what’s going to happen there? Well, the middle class is going to go, well, I can still kind of afford to get out of here. They take off. Who you left with? Who are you left with? A bunch of people not generating any tax revenue at all. Well done, Washington. Ah, genius. You guys are just a bunch of geniuses.
One of the reasons I’m leaving is just terrible leadership like this. And states like Washington continue to become blue, more blue, just more blue, just Ah, yeah, it’s greatest thing ever. More blue. We hate Trump. More blue. Let’s bring in more fiscally irresponsible stuff nonsense like this because they’re not they’re not just going after the millionaires. That is their way of getting this in the pipeline to tax everybody. To tax everybody. Because they need more money for their ridiculous programs that clearly don’t work cuz Washington state is going down the tubes faster than any other state that I know of that I podcast that I follow that I’ve lived in for 57 years and I am I’m hitting that eject button.
I’m hitting that button where boop send me elsewhere. Send me elsewhere that isn’t nearly as pretty but has all of the leadership and the ability to retain my earnings and not have to spend thousands of dollars on ridiculous stuff like wildly overpriced housing, like wildly overpriced gasoline, and in a major income tax like this which is just a predecessor, a really high state income sales tax. Just the list goes on and on and on and on. So, I’m going to leverage and I’m going to go to Oklahoma City in Oklahoma cuz they’ve got red leadership. And that’s something that I really want in my life right now.
All the other cool stuff about Washington state, I can do without. I can do without. I I You know what I mean? Just like, well, yeah. I’m I’m near retirement age and the stuff that Washington state is doing yeah, puts me in such a position where like, I’m not staying here. There is no way I want to stay here. This is all going in the wrong direction and Washington state has such a supermajority that there there’s no way Republicans are any traction what’s whatsoever. All Republicans can do is hope to hold on to whatever, you know, they’ve got going, which isn’t much because this is a Democrat-run state and it’s being run into the ground as Democrats typically do.
The two prime examples I would point to, which are south, and that’s why I’m pointing that way. That’s south. Oregon. And then after that, California. How are those states doing? Not great. In fact, terrible. Terrible. That’s why everybody’s leaving. And they’re going to Texas. They’re going to Florida, Carolinas, Georgia, Nevada, Utah. Away. They’re going away. And it’s not just Washington state. It’s the, you know, California, it’s Oregon, it’s New York, it is Illinois. You know, and those all have typically supermajority Democrat-run political parties. So, Democrats run things into the ground.
It’s pretty clear. Let’s take a look at this story. So-called millionaires tax passed the Washington House Tuesday night. And then Wednesday morning, Howard Schultz of Starbucks fame said, “Yep, I’m out. Florida, here we come.” After more than 24 hours of debate, teeing up the bill for final approval today or tomorrow. Controversial measure creates a 9.79% tax applied to taxable personal annual income that exceeds $1 million. Okay? So, how about um you’ve got two two single people that cohabitate, you know, they they live in sin. Kidding. That that’s that’s my Christian high school coming back up.
Just It just pops up every now and then. Ah, living in sin. Uh-uh. Can’t have that. Hey, you got two people cohabitating. They each make a million bucks. They’re they’re allowed that threshold of a million bucks. But, if you’ve got a married couple that is making a million bucks, two people, they get tagged for that million cuz you got a million exemption, right? But you got two million exemption, two people. So, is this going to is this going to effectively discourage people from getting married? I mean, if you’re looking at it from a financial standpoint, absolutely. Hey, you want to get married?
I would, but look at our tax situation. Our tax liability I I love you and I’d love to get married to you and I would love to spend the rest of my life with you. But we got this whole tax situation. So, you know, uh is that going to happen? It’s got to be a conversation, right? If you’re each making a million bucks, you’re doing something right and you’ve got a lot of liability on the line. Why wouldn’t you take that into consideration? Yeah, okay, but we got to move out of Washington and that’s the deal, right? That’s the deal. Washington is currently one of nine states without an income tax and I am literally moving to a state with an income tax.
It’s 4 and 1/2%. But the way you look at that is the delta on the housing cost. Um you know, where I live here in Bellevue, the median home price is something like 1.8 million dollars. 1.8 million dollars. It’s insane. And in Oklahoma City, it’s under 300. Call it 275. I’ve read anywhere from 225 to 262.5. It’s under 300. Under 300 versus 1.8 in Bellevue? So, I got to pay 4 and 1/2% income tax, state income tax, sign me up. Sign me up, folks. Washington is nine nine states without an income tax and the move is expected to face challenges in court and as a ballot measure. Okay. And will it get turned down?
It it might. So, all of this is, you know, may just be like, boom, done, over. But, you know what it is? This is This is Washington state saying yes to an income tax on top of the highest gas taxes in the country. We typically have the third highest gasoline prices in the country behind Hawaii and California. In California because they’re just absolutely brain dead on this whole green deal. Even though they’re they’re their entire thing is just based on a house of cards that holds no merit whatsoever. Kind of like the whole climate crisis deal, right? Supporters of Senate Bill 6346 say it will bring some fairness to a regressive tax code.
You know what’s regressive? Is really expensive gasoline cuz everybody’s got to have gas, right? Get to their job, take their kids around, go see the grandkids, whatever it might be. When you have super expensive gasoline, that’s regressive. So, you’ve got all of these costs that are already sunk into the lifestyle Washington residents. Yeah, but we’ve got the mountains, Shawn, and we we’ve got Puget Sound, we’ve got Lake Washington, we’ve got Mount Rainier, Mount Baker. Uh-huh. All right. But, if you can’t afford any of that, what’s the point? You know what I mean? What’s That’s kind of where I’m at is what’s the point of all that?
If you’re worried about your financial future and you’re worried about what ridiculous leadership in the state of Washington’s going to do, hit that eject button. Boop. And then just Right? And you land where you land. Legislation includes tax benefits for low-income families and small businesses. I don’t buy that for a second. Do you think this is going to offset the impact of small business? Hell to the no. This is a death blow. This goes through It’s a It’s a death blow. I mean, it just is. And And already had multiple death blows here in the state of Washington. That’s because we’re going down this whole socialist communist nonsense propaganda left-wing you know, my neck, my back, my paycheck is whack.
Well, work harder. Work harder, you losers at Starbucks. You know what I mean? Fiscal analysis has not been released, but the bill’s expected to generate 3.5 billion or more each year in tax revenue beginning in 2029. State leaders this year have been trying to plug a more than immediate $2 billion budget gap. What’s the What’s the um budget deficit in Texas like right now that everybody’s, you know, moving to? Oh, oh, they have a They have a a positive? They have a They have a positive of like 24 billion? Something like that? And and Oklahoma has a multi-billion dollar budget surplus as well.
Huh, that’s weird. I mean, it’s so strange, right? Some states, massive deficits. Some states, surplus. Crazy how that works out, right? And the states that are having a surplus, they are actually reducing taxes. They’re talking in Oklahoma, reducing the state income tax from 4 and 1/2% to like two, two and 1/2, something like that. Something like that. Because they’ve got enough people coming in generating revenue, whereas Washington, Oregon, California, Illinois, New York, they’re losing people. They’re bleeding people out. They’re bleeding businesses out. I mean, businesses that Washington state has the California has lost.
They just lost Yamaha. I mean, you you you Starbucks going from Starbucks going from Washington to Tennessee. I mean, the list just goes on and on. So, not only is the leader Howard Schultz, who was as woke as anybody at one point till he realized, oh, go woke, go broke. He’s like, oh, we to pull back.” And by the way, I’m going to Florida to meet all my other Republican, you know, billionaire buddies. Right? Limousine liberals. I just love saying that word. It’s great word. Final fiscal analysis, okay, I don’t really care. Millionaire’s tax will apply less than 1/2 of 1% of Washingtonians. But, how much tax revenue do those people drive in?
In their absence, the vacuum that they will leave behind. How much will that impact? Well, we’re going to find out sooner or later. If this bad boy doesn’t go through, it’s it’s something in the pipeline that goes through, right? It’s inevitable we have a state income tax because we’re run by Democrats and they love to tax and spend, tax and spend, tax and spend, never cut. Oh, we got to make some brutal cuts. Oh, got to make some tough cuts. But, some tech leaders and entrepreneurs worry it could undermine their sector by souring Washington’s relatively favorable tax laws for startup founders, investors, and high-wage earners.
Let’s see. What has Amazon been doing lately? Well, they’ve been shifting employees away from Seattle because of Seattle’s absolute disincentive to do business there. I mean, literally tax Amazon, uh you know, don’t buy coffee from Starbucks. Those are two hometown companies and you’ve literally got leadership in Seattle saying, “Oh, terrible, terrible. Oh, we need you to pay your fair share.” So, Amazon sending, you know, thousands and thousands of employees to Bellevue here, but that will stop as well because Bellevue is under the umbrella of state of Washington. Bellevue will be taxed just as as as much.
The disincentive is real. The ability for the Democrats to see this coming as None of those people are business they’re not entrepreneurs. They are they’re takers. They take a paycheck, they take from an NGO, they take from wherever, right? I mean, they they All they want is money to spread out to all of their related causes that are just absolutely ridiculous. The concern took a high-profile form last night as Howard Schultz, billionaire former CEO of Starbucks, disclosed on LinkedIn that he and his wife, Sheri, have relocated to Miami. Huh, shocker, right? While Schultz, who has retired, framed the move as a desire to be closer to family on the East Coast, he pointedly noted his hope that Washington will remain a place for business and entrepreneurship to thrive.
Hey, I hope you guys do well with all that nonsense, but I got to go. I got to go to Florida. Who else is left that’s a billionaire? Jeff Bezos, Amazon, moved from Hunts Point. Where’d he go? Florida. Huh. What’s whose leadership in Florida? Mhm, oh, that’s right, Republican. Huh, there’s got to be a correlation there, but I I I just can’t put my I just can’t just can’t put my finger on it, right? Schultz’s family will follow him to Florida, okay. By adopting a state income tax, Washington is giving up one of our primary competitive advantages we’ve had over other states and regions, Johnson said, adding the state is already expensive for families, employers, and could push businesses to start, grow, or move elsewhere.
I’m a real estate broker. One of the things that I am concerned about is our our market here in the Puget Sound region. Most people who own homes today would not qualify to purchase those homes. You’ve got some real real imbalances. The equity The equity that they have is significant, right? But if they can’t afford to buy a home here, then it indicates that your economics are they are not on sound ground. Whereas the market that I’m going to in Oklahoma City, I the hardest part that I’m going to have is choosing a home because I could buy one at 250, I could buy one at 350, I could buy one at 450, and I would probably be equally happy in each decision.
Like I can literally buy new construction at 250. It’s going to be a little bit further out, but there’s no traffic in Oklahoma City. So, what do I care? Yeah, it’s not going to have the greatest gym, but again, it probably will because the way their development goes, it goes in concentric circles out. It’s developed by Republicans. And their leadership is such where well, let’s make this a growth pattern that is sustainable long-term. Whereas here in Washington State, we’ve constricted our ability to build housing. We’ve got so many layers of just absolute gibberish in the building code that you know, your basic building lots are half a million dollars in a lot of markets.
That’s way more than I’m going to spend on a completed house in Oklahoma City. So, you’ve got you’ve got a mar- you’ve got market fundamentals here in Washington State that are not sustainable long-term. If the vast majority of people who live here and work here cannot afford homes here, what does that do to the economy? What does that do to the market? Well, we’re going to find out, right? We’re going to find out. So, this bill marks the first time in decades that state lawmakers have pursued a personal income tax aimed at high-income residents. We’ve we’ve turned it down. Um we turned this thing down I don’t know how many times, like 11?
Is it like 10, 11, 12, 13? Somewhere in that range. It’s double digits for sure. Because it’s a violation of Washington’s constitution. No income tax. Well, this isn’t an income tax, Sean. This isn’t This is a tax on millionaires. Oh, oh, oh. Oh, I see. I get it. No. The tax on millionaires is just going to be applied to the everyday Joe in not too long. Hey, by the way, we’re coming up on a big, you know, budget deficit in 2031. So, we’re going to need everybody to pitch in. So, we’re going to We’re going to run this past you. You know, we know that you guys are all great comrades and um we appreciate your your service in the you know, communist state of Washington here.
And so, we’re going to need you to kick in, you know, 5%. We’re just going to start with a measly 5%. Just 5% to get us going cuz, you know, we got a lot of poor people that we’re supporting here. Got a lot of whacked out drug addicts on the streets living in encampments still. We need you to pitch in and pay your fair share. We need the wealthy to pay their fair share. That is the pitch. That is the pitch that the comrades here in Washington state are making. We need you to pay your fair share. Already are. Already are and I’m nuts. Yeah, but let’s let’s just keep going down this road. I’m sure it’s going to work out fine, right?
It’s It’s mind-blowing that Democrat leadership in Washington state can say this with a straight face that this is this is good. This is good for the state of Washington. I mean, in what world is that good? Well, that’s good in a world where they want to tear down the society and rebuild it in whatever shape or form fits their ideology. That ain’t capitalism. This is not based on capitalism. Capitalism does the opposite. Gives businesses the freedom to do what they they do with their innovation. Gives them the tax basis to make it go. Gives them the breaks that they need. Cheap land to build. Cheap gasoline.
Get your goods and services places. Washington is just on all that. And they come up with this nonsense. I mean, what a joke. Washington is rapidly Washington is rapidly rapidly just taxing its way out of being competitive. And and this this this all this bad boy right here, this is just this is that shift. This is that shift. We’ve had a bunch of others. Washington state payroll tax, tax Amazon. Those were kind of little Those were little feelers to the marketplace of hey, what can we get away with? Well, now we now we get it that we can get away with this nonsense. Oh, yeah. Greatest thing ever.
This is going to be great. This this this should really work cuz you know, we need we need more progressive revenue. Okay. You’re not getting my progressive revenue. Sayonara. And I think there’s a lot of other folks that who have the ability to do so will do so. And folks that I’ve talked to and you know, all the people that that that talk to me whether it’s you know, on the live chat at 9:00 a.m. on uh when we do a premiere every morning of two videos Monday through Friday. Um I try and be there Monday through Thursday on Fridays I can, but Friday’s kind of my flex day to get a bunch of other stuff done.
What I am hearing consistently is if I could move out of Washington state I would, but I got kids. I got grandkids. I don’t want to leave them. I’ve got a business. I’ve got investments. I’ve got rentals. I’ve got stuff that ties people. Otherwise, I think you’d have a much greater exodus than has already happened. And I can’t tell you how many homes Summit Properties Northwest sold of people moving out during the pandemic because the pandemic was uh a a real kind of warning shot. This is how Washington state leadership is going to handle this kind of thing. And we were locked down uh based on the data and the science that didn’t exist.
It It was absurd. It was stupid. Texas and Florida were just wide open going for it. Washington state, “Oh, yeah. No, I mean, you got Rona standing up, you know, regular height, and then when you when you sit down, no Rona, take off your mask, it’s all good.” Just absolute mind-blowing stuff like that are pushing people out, and then millionaire tax That’s not going in the right direction. I’m going to keep podcasting and I’m doing the same thing. People ask me, “What are you going to podcast about?” This stuff. I mean, this isn’t going away. I can podcast this as easily from Oklahoma as I can from anywhere else in the world.
You just sit down at the microphone, you got all the data right in front of you. Let’s go. Make sure you’re subscribed. Hit that notification bell. See you in the next one. Thanks again for joining. Bye for now.
