Washington Senator Defends 9.9% Millionaire Tax as Starbucks Shifts 2,000 Jobs to Nashville
Updated
Updated · Fox News · May 13
Washington Senator Defends 9.9% Millionaire Tax as Starbucks Shifts 2,000 Jobs to Nashville
5 articles · Updated · Fox News · May 13
Jamie Pedersen, Washington's Senate majority leader, said the state's new 9.9% tax on income above $1 million is unlikely to trigger a significant flight of wealthy residents or businesses.
The levy, signed in March, will not take effect until Jan. 1, 2028, with first payments due in 2029, giving the Department of Revenue time to build collection systems and courts time to weigh expected constitutional challenges.
Pedersen said businesses were more concerned about Washington's sales tax on services and estate tax, both of which lawmakers recently revised after backlash from employers and local business owners.
Still, tax-flight fears have intensified after Starbucks said it would move 2,000 corporate jobs to Nashville, while Washington's estate tax for top earners had been raised to 35% before being partly moderated.
The broader fight turns on whether the tax is an excise tax or an unconstitutional income tax in a state where a 1930s court precedent treats income as property subject to a uniform rate.
Will Washington’s new tax trigger a corporate exodus, or will economic advantages persuade top businesses and talent to stay?
With a century of legal precedent against it, what is the state's plan B if its new high-income tax is struck down?