Gregoire Blasts Washington Democrats' 9.9% Millionaires' Tax, Warns 35% Estate Levy Drives Wealth Out
Updated
Updated · Fox News · May 15
Gregoire Blasts Washington Democrats' 9.9% Millionaires' Tax, Warns 35% Estate Levy Drives Wealth Out
4 articles · Updated · Fox News · May 15
Christine Gregoire said Washington Democrats do not grasp the economic fallout of their tax agenda, singling out the new 9.9% tax on income above $1 million and warning wealthy residents will leave rather than pay.
At a May 6 business summit, the former Democratic governor said the state has a spending problem, not a revenue problem, and argued repeated tax, rule and regulatory increases undermine predictability for small businesses.
Her criticism also pointed to Washington's estate tax, which lawmakers had raised to 35% before rolling it back to 20% after backlash; Gregoire said departures would also cut capital-gains receipts and philanthropy.
The millionaires' tax, passed by the Democratic legislature and signed in March, is due to take effect on Jan. 1, 2028, with first payments due in 2029.
Business flight has already become a political flashpoint: Starbucks said it would move 2,000 corporate jobs to Nashville after the tax passed, while Seattle Mayor Katie Wilson drew criticism for downplaying millionaire departures.
As businesses exit, can Washington's new tax on millionaires still fund the billions promised for state services?
Facing legal challenges and a repeal effort, will Washington's first-ever income tax survive until its 2028 effective date?