Leading WA Tech, AI Officials ‘Warn’ Legislature, Millionaire’s Tax Will Drive Business Elsewhere

Besides agriculture, the other leading WA state industry is tech-related. Now, AI developers, tech leaders and others warn about the millionaire's tax.

  A Letter Was Sent to Governor Ferguson, With Warnings

The proposed millionaire's tax, as it was being spun by the Democrat-controlled legislature, is actually more of an income tax, due to the way it's structured.  Pushed as a tax only on the 'top few' percentage of earners in WA State, it's actually much more.

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The tax is structured so it can be modified to lower the threshold to those making a few hundred thousand a year, or perhaps in coming years, even lower. It also targets couples whose combined earnings hit $1 million or higher.

Now, a group of leading WA tech and AI developers and others have sent a letter to Governor Ferguson, warning if it passes, it will likely stall AI and other development, and send a lot of business elsewhere.

 WA Already Has One of the Most Unfavorable Business Climates in US

 The National Federation of Independent Business's 2024 survey shows WA State is the worst place to start a new business, with a survival rate of only 59.2 percent, ranking us 48th.  The state also has the highest unemployment tax rate, the Business and Occupation Tax rates equates to the highest income tax rate in the US, and worker's comp taxes are 33 percent higher than the nationa average.

The letter to Gov. Ferguson from these tech and AI leaders said in part, according to Geekwire:

“These policies would materially undermine Washington’s ability to keep growing the tech sector, which is a core driver of our economy..."

The letter, signed by 15 of the top developers, executives and teach leaders in WA and the US, point to a three-year downtown in WA state business development.  And, they pointed to companies either setting up shop or relocating to Texas or other states with more favorable business environments.