The founder of Starbucks announced he was moving to Florida just as Washington state Democrats voted to create the state's first income tax, targeting those who make more than $1 million a year.
The Seattle Times reported that the measure, approved by the state Senate on Wednesday, would implement a 9.9 percent income tax on income over $1 million a year. Gov. Bob Ferguson is expected to sign the legislation over the objections of Republican lawmakers who said the cost of the tax will trickle down to everyone.
"Everyone with a job will eventually be paying this income tax ... because it's the easiest thing that politicians can do when budget deficits come about," said Sen. Chris Gildon, R-Puyallup.
Earlier this week, the state House debated the income tax during a nearly 24-hour session. During that lengthy debate, Starbucks Corp. founder Howard Schultz announced he was moving to Florida in a LinkedIn post.
"Last year we traveled to dozens of places around the world—places we were too busy to see when building Starbucks and raising kids. And we have moved to Miami for our next adventure together. We are enjoying the sunshine of South Florida and its allure to our kids on the East Coast as they raise families of their own," Schultz wrote.
Schultz, who is retired, did not directly reference the income tax and stated that the planned move was in the works for years. He did state that "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."
Forbes reported that Schultz was worth about $3.5 billion and had purchased a $44 million penthouse in Florida.
The Seattle Times reported that the income tax would generate $3 to $4 billion, which would primarily go toward education. The measure did include tax breaks such as eliminating the state sales tax on diapers, over-the-counter drugs, and hygiene products.
The bill also would expand the Working Families Tax Credit, which sends rebates of up to $1,300 to eligible families. The expansion makes 460,000 more households eligible. Meanwhile, about 30,000 taxpayers will be hit with the new income tax, according to the Washington Budget and Policy Center.
The center said the tax only will kick in on income above $1 million. So, if a person made $1,000,500 annually, the tax would only be on $500, resulting in a $50 tax bill.
Although the bill is expected to be signed by Gov. Ferguson, the measure still will face likely legal challenges. Axios noted that a 1933 court ruling found that income, according to the state's constitution, was property and should be taxed at a uniform rate.
"It was a single Supreme Court case from before anybody in this room was alive, on a five-to-four decision that said that income was property," state House Majority Leader Joe Fitzgibbon, D-Seattle, said regarding the issue last month, according to Axios.
Originally published on IBTimes
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