Washington's Millionaires Tax Divides Business Owners

Seattle barbers, truck company owners, and radio hosts voice concerns over new tax policy's impact on local economy

Apr. 13, 2026 at 7:56am

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A cinematic painting depicting the Seattle skyline at dusk, with a lone business owner standing in the foreground. The scene is bathed in warm, diagonal sunlight and deep shadows, capturing the pensive mood and uncertainty surrounding the city's new tax policy.As Seattle's business community grapples with a new 'millionaires tax,' the city's iconic skyline reflects the growing uncertainty and tension surrounding the controversial policy.Seattle Today

A new 'millionaires tax' in Washington state has sparked a heated debate among business owners in Seattle. While some progressive lawmakers defend the 9.9% income tax on households earning over $1 million as a step towards fairness, many local business owners fear it could drive economic activity away and eventually target them as well. Barbers, truck company principals, and radio hosts express worries that the tax will treat small businesses like an 'ATM' and that it sets a dangerous precedent that could expand beyond just millionaires.

Why it matters

The millionaires tax is part of a broader trend of rising taxes and business-unfriendly policies in Washington that have already led to the departure of major employers like Amazon and Starbucks. Business owners warn that the new tax could further damage the local economy, drive more companies and high-earners to relocate, and ultimately hurt small businesses that rely on the spending of affluent residents and large corporations.

The details

The new 'millionaires tax' is set to take effect in 2028, imposing a 9.9% income tax on households earning over $1 million annually. While supporters claim it will fund public services, critics argue it treats small businesses as 'ATMs' for tax revenue and could eventually expand to target regular citizens, not just the wealthy. Business owners like Matt Humphrey, a Seattle barber, and Steve Gordon, principal of Gordon Truck Centers, say the tax is just the latest in a series of burdensome policies, including high minimum wages and complex tax structures, that are making it increasingly difficult to operate in the city.

  • The millionaires tax is set to take effect in 2028.
  • The tax was recently enacted by Washington state Democrats.

The players

Matt Humphrey

A Seattle barber with locations in Ballard and Roosevelt who fears the millionaires tax will negatively impact small businesses like his.

Steve Gordon

The principal of Gordon Truck Centers who believes the income tax is just one battle in a series of tax-related struggles and that it could eventually expand to regular citizens, not just millionaires.

Ari Hoffman

A radio host who highlights how the departure of major employers like Amazon has already affected local businesses reliant on their employees.

Shaun Scott

A member of the Seattle Democratic Socialists of America who defends the millionaires tax, arguing that it is a popular policy position supported by both Republicans and Democrats and will help address wealth inequality.

Vijay Boyapati

A former Google software engineer who argues that taxes have risen without producing better educational results, questioning the effectiveness of throwing more money at the problem without addressing its root causes.

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What they’re saying

“Don't let this happen to you.”

— Matt Humphrey, Seattle barber

“The income tax is just one battle in a series of tax-related struggles, and the potential for it to broaden its reach is a worrying prospect.”

— Steve Gordon, Principal, Gordon Truck Centers

“Taxes have risen without producing better educational results. We need to address the root causes, not just throw more money at the problem.”

— Vijay Boyapati, Former Google software engineer

What’s next

The constitutionality of the millionaires tax is expected to be challenged in court, and the long-term impact on Seattle's economy will continue to be closely monitored.

The takeaway

The millionaires tax has exposed a deep divide between progressive lawmakers and business owners in Seattle, raising concerns about the city's ability to balance fairness and economic viability. As other states consider similar tax policies, the lessons learned in Washington could serve as a cautionary tale about the potential unintended consequences of targeting the wealthy.