Full Breakdown
Howard Schultz Relocates to Florida Amid Washington's New Wealth Tax
3/12/2026, 4:33:21 AM
Wealth Tax Legislation Passed in Washington State
On March 11, 2026, the Washington State House passed Senate Bill 6346, a wealth tax targeting individuals earning over $1 million annually. The bill, which imposes a 9.9% tax on such earnings, is set to take effect in 2028, with the first payments due in 2029. This legislation aims to address a budget shortfall and fund services like free K-12 school meals. Washington Governor Bob Ferguson, a Democrat, has expressed support for the tax, stating it would create a fairer taxation system.
Howard Schultz's Announcement
Hours after the passage of the wealth tax, Howard Schultz, the former CEO of Starbucks, announced his relocation from Seattle to Miami, Florida. In a LinkedIn post, Schultz framed the move as a personal decision marking the beginning of his retirement phase, stating, “We have moved to Miami for our next adventure together.” He emphasized his gratitude for the memories made in Seattle and the relationships built over nearly five decades in the city.
Implications of Schultz's Move
Schultz's announcement has sparked discussions about the potential impact of the new wealth tax on high-income residents in Washington. Critics argue that such taxes could drive wealthy individuals and entrepreneurs to states with more favorable tax laws, such as Florida, which has no personal income tax. Schultz did not explicitly mention the wealth tax in his announcement, but his timing has led to speculation about its influence on his decision.
Starbucks' Corporate Strategy
While Schultz's personal move has garnered attention, Starbucks is also adjusting its corporate strategy. The company has announced plans to open a new corporate office in Nashville, Tennessee, which is another state without a personal income tax. Although Starbucks maintains its North America and Global Support Headquarters in Seattle, the expansion to Tennessee raises questions about the company's long-term presence in Washington.
Criticism and Opposition
The wealth tax has faced opposition from various quarters, with critics arguing that it could exacerbate issues related to the state's economy and drive out high-income residents. Some have pointed to Seattle's growing reputation for homelessness and crime as factors that could deter business investment and residency. Schultz's relocation is seen by some as emblematic of a broader trend among wealthy individuals seeking more business-friendly environments.
Official Statements & Responses
Governor Bob Ferguson has indicated his intention to sign the wealth tax into law, asserting that it will help create essential opportunities for residents. Meanwhile, Schultz expressed hope that Washington would remain a place where business and entrepreneurship can thrive, despite his decision to leave.
Verbatim Quotes
- “And we have moved to Miami for our next adventure together.” — Howard Schultz, Former CEO of Starbucks
- “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,” — Howard Schultz, Former CEO of Starbucks
- “Ferguson, in a statement Tuesday, said: 'I look forward to signing it.” — Bob Ferguson, Governor of Washington
What's Next
As the wealth tax legislation awaits the governor's signature, the implications of Schultz's move and Starbucks' corporate strategies will likely continue to be scrutinized. Observers will be watching to see if other high-income residents follow suit and how this might affect Washington's economy moving forward.
