Take Washington’s massive tax increase. Democrats just approved a 9.9 percent tax on income above $1 million. If you stay in Washington, you’ll pay a combined rate with the top income tax (37 percent) of over 46 percent. It will make Washington the state with the highest tax rate in the United States. With California next door, that is no small feat.
Many taxpayers are joining figures like Jeff Bezos and various businesses heading to low-tax states. Washington is already one of the states with the highest levels of migration out of the state, so Democrats are rushing to offer new reasons to leave.
The solution proposed by some Democratic politicians, like Rep. Ro Khanna, is to call for a national wealth tax that would force the rich to either move out of the country or pony up more money. The problem is that, even if the Supreme Court upholds a wealth tax, it has already been tried with disastrous results. France imposed such taxes on its wealthiest citizens, who promptly left France. Many came to the United States.
Some will not be sticking around to experience that joy of wealth redistribution in Washington state. Starbucks founder Howard Schultz just announced that he is leaving the state that launched his iconic brand. In his letter to Seattle, Schultz wrote “It is our hope that Washington will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas.” Schultz cited various reasons for leaving, including their “enter[ing] the ‘retirement’ phase of our lives.” However, for top taxpayers in the state, there are fewer and fewer reasons to stay.
Where is Schultz going? You guessed it . . . Florida.