Will Washington's Millionaires' Tax Drive The Rich Out Of The State?
Will Washington's Millionaires' Tax Drive The Rich Out Of The State?
Tanya RawatSun, April 5, 2026 at 11:32 PM UTC
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Washington state made history earlier this week when Gov. Bob Ferguson signed Senate Bill 6346, the Millionaires’ Tax, into law. The bill taxes individual income exceeding $1 million a year. Less than half of one percent of Washingtonians will pay it.
In its first full year, more than 41.3% of revenue returns to families and small business owners. That rises to 47.3% the following year.
Benefits include free meals for all K-12 students, expansion of the Working Families Tax Credit to 460,000 new families, and over $320 million invested in affordable childcare. Sales tax on diapers and over-the-counter drugs will also be eliminated.
Not everyone is convinced. JPMorgan Chase & Co. CEO Jamie Dimon, speaking on FOX & Friends, warned that tax-the-rich policies are “a big factor in why people move.”
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“Look at California versus Nevada. New York versus Florida. There is a huge exit taking place. It is not good for the city,” Dimon said. “Unfortunately, people vote with their feet.”
His warning comes as household pressures mount. The average 30-year fixed mortgage rate hit 6.38% this week, a six-month high, according to Freddie Mac. Rates have risen for four consecutive weeks, driven by oil surging more than 30% since the Iran conflict began in late February.
Meanwhile, the OECD projects U.S. inflation will climb to 4.2% in 2026, up from 2.6% in 2025, and the Federal Reserve is expected to hold rates steady through 2026 and into 2027.
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The Fairness Debate And Flight Risk
Sen. Bernie Sanders (I-Vt.) pushed back, arguing a 5% federal wealth tax would require Dimon to pay roughly $135 million more while still leaving him worth over $2.5 billion.
See Also: You Saved for Retirement — But Do You Know What You'll Keep After Taxes?
Washington’s move also revives a familiar warning. Florida Gov. Ron DeSantis previously said the state “lost its biggest taxpayer” when Amazon.com Inc. founder Jeff Bezos relocated to Florida in late 2023, reportedly saving Bezos $1 billion in taxes against Washington’s annual state revenue of $66.39 billion.
DeSantis called the tax “counterproductive,” warning that states without income taxes hold “a major advantage” and that taxpayers will inevitably flee.
Image via Shutterstock
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