Seattle Mayor Wilson waves off millionaire exodus over 9.9% tax
Seattle mayor Katie Wilson laughed and waved goodbye when asked on April 14, 2026, whether millionaires would leave Washington over the state’s new 9.9% income tax. At a Seattle University Conversations event, she called the departure claims “super overblown” and said, “the ones that leave, like, bye.”
Wilson’s response landed in a debate already tied to the city’s finances. She said her office is looking at progressive taxation options, while also warning that Seattle faces “a large structural budget deficit” in the upcoming budget cycle.
Seattle University Conversations
Wilson told the audience, “In general, we still have the very regressive tax system, and my office is doing a lot of work to look at what our options are in terms of progressive taxation.” She added, “We do have more flexibility at the city, at the county, in terms of our taxing authority.”
She also pointed to Seattle’s business costs, saying, “it’s not good for Seattle’s business environment, for example, for the cost of doing business in downtown Seattle to be wildly out of step with, for instance, neighboring Bellevue.” The remarks drew cheers from the audience.
Washington Tax Debate
The dispute comes as the source says the number of businesses considering leaving Washington has nearly doubled since the millionaires’ tax was first introduced. It also says Washington’s housing market is already stalling, with active listings up 29% year over year while closed sales barely moved.
Jason Mercier of the Mountain States Policy Center responded to Wilson’s remarks by saying, “A couple of Beatle songs come to mind. The first is ‘Taxman,’ and then Seattle says, ‘Goodbye’, and Idaho says, ‘Hello Hello, hello,”
Starbucks And City Revenue
Wilson’s comments also fit a wider argument she has made about corporate and city finances. Starbucks announced a $100 million investment and 2,000 new jobs in Nashville, and Fox 13 reported Seattle could lose up to $750 million in tax revenue over the coming years as Starbucks expands in Tennessee rather than Washington.
Wilson joined a Starbucks protest picket line after winning the mayoral race last November, saying, “That is why I am proud to join them on their picket line and proud to say loud and clear, I am not buying Starbucks and you should not either.” Former Starbucks CEO Howard Schultz announced his move to Florida the same day state legislators approved the millionaires’ tax.
For Seattle, the immediate question is how Wilson balances her push for progressive taxation with a city budget gap and a business climate she said must stay closer to neighboring Bellevue. Those pressures now sit in the same budget cycle.
