Tech Entrepreneur Exits Washington Over Billionaire Tax
A well-known technology entrepreneur from Washington is among a growing number of business figures departing the state, attributing their move to significant shifts in the tax landscape following a controversial new “billionaire tax.”
Jesse Proudman, who founded Venice.ai, a privacy-oriented generative AI platform, expressed his concerns in an interview. He referred to Washington, which he once viewed as a “startup mecca,” as increasingly unwelcoming to the business community that bolsters its economy.
“I’ve launched three companies here. My entire entrepreneurial journey has been rooted in this state,” Proudman noted. “When I started out, the environment was very supportive of entrepreneurs, and the startup community was recognized as an asset to the city. But that has changed a lot recently,” he added, sounding a bit frustrated.
Proudman previously established the private cloud company Blue Box and the cryptocurrency investment platform Makara, and now acts as a spokesperson for Let’s Go Washington.
Meanwhile, a political committee is actively working to gather enough signatures to repeal the new tax before it takes effect.
This tax, enacted by the Democratic-majority Legislature during the 2026 session and signed by Governor Bob Ferguson in March, levies a 9.9% tax on annual incomes over $1 million. It’s set to begin on January 1, 2028, with initial payments due in 2029. However, the looming threat of enforcement is already influencing population shifts.
“We need to collect about 325,000 signatures by July 2 to get this issue on the November ballot,” stated Harry Hertzberg, the communications director for Let’s Go Washington. “People deserve the chance to vote on this matter. We’re witnessing businesses, employers, and families leave our state,” he remarked.
This tax represents a significant departure for Washington, which has traditionally been one of the few states without a personal income tax.
The recent 2023 ruling by the state Supreme Court, which upheld a 7% capital gains tax, changed the legal framework, paving the way for broader income-based taxes. Critics argue this approach violates the state constitution, which stipulates that taxation should occur at a flat rate.
Senator Jamie Pedersen (D-Seattle), a key figure behind the bill, dismissed fears regarding potential tax evasion.
Following the bill’s signing, Pedersen remarked to a local news station, “It’s unlikely that businesses will leave because of the billionaire tax.” He later maintained that there’s “no evidence” that high-income individuals relocate to states with lower taxes, like Florida or Texas.
Yet, data from the Association of Washington Business indicates otherwise. A recent study highlighted by Center Square revealed that 44% of business leaders in the state are contemplating moving their residences.
Moreover, Washington companies reported they’re now more than twice as likely to expand outside the state as they are to do so within it.
For Proudman, the decision is crystal clear: he is relocating his life and business interests to Austin, Texas. “It’s just not a friendly environment for business anymore,” he stated with conviction. “Startup companies are being stigmatized. We explored various options, but in the end, it’s going to be Austin.”
Proudman cautioned that while the tax is being marketed as a “millionaire’s tax,” its long-term economic repercussions will inevitably affect middle-class residents as the tax base diminishes.
“They’re focusing on a very mobile demographic,” Proudman argued. “As these individuals leave, the tax burden shifts to everyone remaining. Voters might not realize they are setting themselves up for a poor tax situation. Washington is already the 45th worst state in terms of tax burden. This tax could be unconstitutional and will ultimately lead to higher taxes for all.
As of now, Sen. Pedersen’s office has not responded to inquiries regarding the matter.
