As survey claims exodus of businesses from Washington over Millionaires tax, Seattle’s mayor boasts of donations from Starbucks, T-Mobile and Microsoft for her …

Seattle’s Democrat mayor Katie Wilson is not convinced with a recent survey that suggests that more than half of her state’s business leaders are planning to leave over the imposition of a new millionaire’s tax. In March this year, Washington state Democrats passed the millionaire’s tax, a 9.9% income tax for households that make over $1 million a year. Over half (55%) of Washington state business leaders are thinking of relocating their personal residence to another state, according to the latest survey unveiled in May by the Association of Washington Business (AWB), as reported by the Olympian. This marks an increase of 11 percentage points since earlier this year, when 44% of state employers said they were considering leaving the state. However, Seattle Mayor Wilson called the concerns about companies fleeing Washington as “overblown.” “I still think that claims of a large exodus of rich people due to our statewide millionaire tax that the legislature passed this year are overblown,” Wilson said, laughing, during an interview with FOX 13 Seattle last Wednesday.She claimed that she had built good relationships within the city’s business community since taking office on January 1 this year. “When I think about the last five months and the things that I and my administration have done to build bridges with the business community, the narrative that was spun around those things is very, very out of step with the reality,” said Wilson. She further said that Washington-based companies, including Starbucks, T-Mobile and Microsoft, were all on board with her controversial 90-unit tiny house village being built to temporarily house the homeless in Seattle. “This narrative that it’s like Seattle socialist mayor versus Starbucks, like well, then why are they donating a million dollars to our shelter site?” Wilson asked.

What AWB survey said about companies leaving Washington

A AWB survey in May showed that the number of employers looking to move their business out of Washington rose to 24%, up from 17% in the prior quarter and nearly triple the number reported in AWB’s winter 2025 survey 16 months earlier. Another 55% said they are considering moving their personal residence to another state, up from 44% the previous quarter. In Spokane County, a short drive from the Idaho border, 67% of respondents said they were considering moving their personal residence to another state.The largest share (35%) report they are in the beginning stages of exploring a business move while 28% are actively searching for locations and 18% are developing a relocation plan. Six percent have already relocated part of their business, and 3% are in the process of relocating. For those looking to move their personal residence, 59% report looking for real estate in another state, 44% are consulting with a CPA or tax professional, and 18% already own a home or condominium in another state.Interest in relocation is just one of the ways the survey revealed employers’ lack of confidence in Washington’s economy. Sentiment has worsened across nearly every indicator over the last 16 months since lawmakers passed a record $9.4 billion in new taxes in 2025 and followed up this year by passing an income tax that’s billed as targeting millionaires but will also hit small- and medium-sized businesses that are structured as pass-through entities.“It’s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won’t really leave, but that would be a mistake,” said AWB President Kris Johnson. “We are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion.“And it isn’t just that businesses are looking to leave. Business owners are moving taxable assets out of Washington, they aren’t planning to hire as many workers, they’re growing more worried about a recession, and they’re far more likely to expand their businesses in another state than they are to grow here in Washington. We hope that policymakers will regard this as the emergency that it is and respond by developing a pro-growth agenda aimed at keeping businesses from leaving the state, and creating the conditions for businesses to start, grow and thrive right here in Washington.”The cost of health care once again ranked second on the list of top business concerns (65%), followed by government regulations (58%). The cost of fuel, a new choice in this survey, came in No. 4 with 53% flagging it. Concern about inflation ticked back up to 51%, after falling to 40% last quarter, and ranked No. 5. Concern about tariffs continued to fall, dropping to 28% compared to 30% last quarter, and yet more than half of respondents (56%) continue to report negative impacts from tariffs.