Former Washington Governor Christine Gregoire recently criticized her Democratic colleagues in the state legislature, following the introduction of a new tax targeting millionaires.
Speaking at the Association of Washington Business 2026 Spring Summit on May 6, Gregoire, who led Washington from 2005 to 2013, was questioned about her views on whether the state lawmakers fully grasp the repercussions of their economic decisions.
“Frankly, I don’t think they do,” Gregoire remarked, citing the estate tax as an example.
“I had debates with some individuals regarding the estate tax. We were already the highest in the nation, matched only by Hawaii at 20%. Then we jumped to 35%. We’ve not only set a record; we’ve surpassed it,” she explained.
Although the estate tax rate was initially increased to 35%, a new bill passed in April has since reverted it back to 20% following public outcry.
“And I said now, you understand the consequences of this?” she continued.
“Can I see your fiscal note? Because I’d like to help it. Because here’s what you can expect. Those people are not homeless. They will not pay. They’re leaving. When they leave, they stop paying capital gains.
“When they leave, they stop giving significantly to philanthropy, which would otherwise be necessary by government. So you understand, do you see the consequences of what you’re doing? And the answer is no.”
Gregoire also called out Democratic state House members for a lack of business experience in understanding the impact taxes have on small businesses.
“I would suggest to you, we don’t really have an income problem,” she said. “We have a spending problem, and we’re answering it by stacking one more tax, one more rule, one more regulation.
“And the one thing that the business community doesn’t need is that lack of predictability. That’s how businesses grow, that’s how they thrive. That’s not healthy for our business community at all.”
Pushed through by the Democratic majority during the 2026 session, the millionaires’ tax imposes a 9.9% tax on annual income exceeding $1 million for individuals or households.
While the tax was signed in March 2026, it is not scheduled to take effect until Jan. 1, 2028, with the first payments due in 2029.
After the tax was passed, Starbucks, which originated in Seattle, announced that it would be moving 2,000 corporate jobs to a new regional headquarters in Nashville, Tennessee.
The tax also came as Seattle Mayor Katie Wilson, a self-described socialist, faced criticism for her dismissive attitude toward the idea of millionaires leaving the state.