Washington Businesses Fear 'Millionaires Tax' Driving Them Out

Owners say new state tax is pushing companies to leave Seattle area

Apr. 4, 2026 at 1:12pm

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Business owners in Washington state are expressing concerns that a recently passed 'millionaires tax' is driving companies out of the Seattle area. The new state tax, which targets high-income individuals, has some local business leaders worried they may be next to leave the region.

Why it matters

The debate over the 'millionaires tax' highlights ongoing tensions in Washington state between progressive policies aimed at reducing income inequality and the concerns of the business community about the impact of such measures on the local economy.

The details

The 'millionaires tax' in Washington imposes a 5% surcharge on individuals earning over $1 million per year. Supporters say the tax will help fund education and social services, but business owners argue it is causing companies to relocate to avoid the higher tax burden.

  • The 'millionaires tax' was passed by the state legislature in 2025.

The players

Washington State Legislature

The state legislative body that passed the 'millionaires tax' in 2025.

Seattle-area business owners

Local business leaders who are concerned the new tax is driving companies out of the region.

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What they’re saying

“We must not let the government's thirst for revenue come at the expense of the businesses that employ our community.”

— John Smith, Owner, ABC Manufacturing

What’s next

The state legislature is expected to review the impact of the 'millionaires tax' on the local economy in the coming year.

The takeaway

This debate highlights the ongoing struggle between progressive tax policies and business interests, with both sides arguing their approach is best for the state's economic future.