When it comes to companies leaving washington after millionaire’s tax passage, in a significant response to the newly enacted millionaire's tax, Seattle-based entrepreneur Marc Barros has announced his departure from Washington state, taking his company, Movement, with him. Barros cited unsustainable tax burdens as the primary reason for his relocation, which he shared on the social media platform X. The millionaire tax, which was passed by the Washington State legislature last week, imposes a 9.9% income tax on households earning more than $1 million annually.
Barros, who is not affected by the millionaire tax himself, expressed his frustration with the overall financial landscape for businesses in Washington. "I'm not even a millionaire affected by this tax. But when you add up all the costs to run a business in WA we can't afford it," he stated. He plans to move his business operations to Wyoming, where he believes the tax environment will be more favorable. Barros did not disclose the exact timing of his move, but indicated that Movement will officially relocate this month. Learn more on Investopedia.
Understanding Companies Leaving Washington After Millionaire’s Tax Passage
The decision to leave Washington is not solely based on the millionaire tax. Barros highlighted several other financial burdens that weigh heavily on businesses operating in the state. He pointed to a city sales tax of 10.5%, various property taxes, state capital gains tax, and both state and city business and occupation taxes as key contributors to his decision. Moreover, he noted that a recent removal of the state sales tax exemption on digital advertising has significantly increased his operational costs.
Barros explained that his business now faces additional taxation on ads running in international markets, specifically mentioning a $200,000 annual tax that was implemented overnight. "Again (it's) not even based in where your ads run or where your team is. Incorporated in WA state? You will pay this tax," he remarked. This shift in taxation policy represents a broader trend that may compel other businesses to reconsider their operational bases.
Concerns About an Exodus of Wealth and Businesses
While Barros' departure may not be indicative of a mass exodus yet, his comments underscore rising anxiety among business leaders in Washington about the potential long-term effects of increased taxation. Seattle attorney Joe Wallin, who opposes the millionaire tax, believes that the new income tax, set to take effect in 2029, will drive some businesses out of the state. Wallin is particularly concerned that the tax could deter new companies from establishing operations in Washington altogether.
He elaborated on this point, stating, "Some of the bill's effects will be invisible because new companies won't come to Seattle or the state of Washington in the first place." This could lead to stagnation in the local economy, with potential long-term ramifications for employment and investment.
Shifting Landscape in Seattle's Business Community
The business landscape in Seattle is already showing signs of strain, with many companies reassessing their location strategies. Some established firms are opting to move employees from Seattle to nearby Bellevue, a city that has become increasingly attractive due to its lower tax burdens. In fact, Amazon has relocated thousands of employees to Bellevue and other locations within King County in recent years, a trend attributed to Seattle's aggressive tax policies.
Jon Scholes, President and CEO of the Downtown Seattle Association, reported that the office vacancy rate in Seattle reached over 30% in the last quarter of 2025, a record high that he directly links to the increased local taxes on businesses. This trend indicates a troubling pattern for Seattle's economy, as businesses grapple with rising operational costs while trying to retain talent and maintain profitability.
The ongoing discussions regarding the millionaire tax and its implications are likely to continue as Washington businesses navigate this changing landscape. With entrepreneurs like Barros leading the charge in relocating to more tax-friendly environments, the state may face increasing pressure to reconsider its fiscal policies. This situation serves as a reminder that taxation decisions can have far-reaching impacts on local economies and business viability.
As Washington prepares for the implementation of the millionaire tax in 2029, the business community is bracing for potential shifts in investment and employment trends. Whether this will lead to a significant exodus of wealthy individuals and companies remains to be seen, but the stakes are undoubtedly high for the future of business in the state.
Originally reported by Nutfieldnews. View original.