Former Washington state governor Christine Gregoire criticized her fellow Democrats in the state legislature over the recent billionaire tax implemented in Washington.
During her attendance at the Washington Business Association Spring 2026 Summit on May 6, Gregoire, who served as governor from 2005 to 2013, was questioned about whether the state Legislature grasped the effects of its economic policies.
“I don’t think so,” she replied, pointing to the inheritance tax as an example.
“We had discussions about inheritance taxes. We used to be the highest in the country, along with Hawaii at 20 percent, and now it has jumped to 35 percent. We’re not just doing well; we’re surpassing that,” she noted.
Although inheritance taxes rose to 35%, new legislation passed in April has since reduced it back to 20%, following public backlash.
Gregoire stated, “Do you understand the consequences of this?”
“Can I see your financial reports? I want to help with that. What can you expect? Those affluent individuals aren’t homeless. They won’t stay and pay—they’ll just leave. If they go, they will stop contributing to capital gains.”
“When they leave, philanthropy will decline. Governments should handle philanthropy, so can’t you see the repercussions of what you’re doing? And the honest answer is no.”
Additionally, Gregoire expressed disapproval of Democratic state House members for lacking the necessary business experience to appreciate how taxes can influence small businesses.
“I want to be clear, we don’t have income issues,” she stated. “We have a spending problem, and instead of addressing that, we just keep adding more taxes, rules, and regulations.”
“The business community thrives on predictability. That’s essential for growth, and what’s happening now is not healthy for our economic environment.”
The millionaire tax, which is set to be approved by the Democratic majority in the 2026 session, will implement a 9.9% tax on individuals and households earning more than $1 million annually.
This tax, signed in March 2026, won’t take effect until January 1, 2028, with initial payments expected in 2029.
Just after the tax’s approval, Seattle-based Starbucks announced its decision to relocate 2,000 corporate jobs to a new regional headquarters in Nashville, Tennessee.
This move comes amid criticism directed at Seattle Mayor Katie Wilson, who has a socialist viewpoint and has faced backlash for her dismissive approach regarding the potential exodus of billionaires from the state.
