The Seattle state lawmaker behind Washington’s newly minted "millionaire's tax" is dismissing concerns that a high-income tax hike will trigger an exodus of wealthy residents and businesses from the Pacific Northwest.

"The reality is the millionaire tax is not likely to result in businesses leaving," State Sen. Jamie Pedersen (D-Seattle) told a local FOX affiliate following the bill’s signing.

Pedersen, the Senate Majority Leader representing Washington's 43rd Legislative District, maintains there is no evidence that the tax—recently signed into law by Gov. Bob Ferguson—will drive the state's top earners to lower-tax jurisdictions like Florida or Texas.

"The drivers that we heard about from [businesses] are concerned about the sales tax on services [and] concern about the estate tax. Both of those things the legislature took action on in the last session," Pedersen said. "I do not have any indication that the millionaire's tax is going to cause some significant exodus."

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The legislation marks a seismic shift for a state that has historically prided itself on having no personal income tax. Pushed through by the Democratic majority during the 2026 session, the bill imposes a 9.9% tax on annual income exceeding $1 million for individuals or households.

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While the tax was signed in March 2026, it is not scheduled to take effect until January 1, 2028, with the first payments due in 2029. The delay is intended to allow the state's Department of Revenue to build a collection infrastructure—and to allow time for the inevitable wave of constitutional challenges to clear the courts.

Despite Pedersen's optimism, the regional business landscape is already showing signs of strain. Coffee giant Starbucks recently announced it will shift 2,000 corporate jobs—primarily in IT and supply chain management—to a new regional headquarters in Nashville, Tennessee. While Starbucks maintains it is not abandoning its Seattle roots, the move to a state with no personal income tax has amplified fears of "tax flight."

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Furthermore, multiple local business owners told FOX 13 Seattle they were forced to shutter operations due to the state's expanded retail sales tax on services. In response to this pressure, the legislature recently moved to scale back those expansions and is expected to roll back certain retail taxes within three years.