At a recent event, former Washington Governor Christine Gregoire expressed her sharp criticism of the Democratic legislators in Washington state following the implementation of a new tax targeting millionaires.
Gregoire, who governed the state from 2005 to 2013, shared her concerns during the Association of Washington Business’s 2026 Spring Summit on May 6. When questioned about whether she thinks the state lawmakers grasp the ramifications of their economic decisions, her response was candid.
“Honestly, I don’t believe they do,” Gregoire commented, referring specifically to the newly adjusted estate tax.
She elaborated on her disagreement, stating, “I had discussions about the estate tax. Previously, we were tied with Hawaii for the highest rate at 20%. Now, we’ve jumped to 35%. This doesn’t just make us the highest; it places us well beyond that mark.”
Although the estate tax reached 35%, a recent legislative move in April reduced it back to 20% due to significant opposition.
Gregoire further pressed, “And I asked, do you now see the consequences of this decision?”
“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.
