Washington’s 9.9% Millionaire Tax Raises Fears of Wealthy Exodus

Washington State has long been known as one of the few states without a broad-based personal income tax. That may be about to change. In this presentation, attorney and CPA Chad Cummings examines Washington’s proposed 9.9% tax on income above $1 million under Senate Bill 6346 and the economic consequences that may follow if the measure becomes law. The discussion explains how targeted millionaire taxes depend heavily on a very small group of taxpayers remaining in place. When a tax applies to roughly 0.5% of residents, the entire revenue model assumes those individuals will continue to live, invest, and operate businesses in the state. The presentation explores why that assumption often fails when the taxpayers affected have the financial resources and professional advisors necessary to relocate quickly. Recent events already suggest the behavioral response policymakers must consider. Within days of the bill advancing, Starbucks founder Howard Schultz announced that he and his wife are leaving Washington after more than forty years in Seattle and relocating their family office to Florida. The presentation also examines how states such as Florida and Texas have structured their tax and regulatory environments to attract precisely the type of capital that high-tax jurisdictions risk losing, and why business owners considering relocation must also evaluate whether their company’s legal domicile should follow them. Learn more: https://www.cummings.law/redomestication/