Howard Schultz, the former CEO of Starbucks, is packing up and heading to Florida, leaving behind a Washington state grappling with a new tax proposal targeting millionaires. This move comes as Starbucks announces the opening of a new corporate office in Nashville, Tennessee. It highlights a significant shift, not just for Schultz and his family, but also for the larger trends affecting the business landscape in politically charged environments.
The Washington state legislature is considering a “millionaires tax” that would impose a 9.9% income tax on households earning over $1 million yearly. Recently, the House passed the bill by a narrow margin of 51-46 votes. This contentious legislation has faced pushback, with some lawmakers arguing that wealthy residents would not abandon the state, a sentiment that seems to have missed Schultz’s departure. Washington State Representative Natasha Hill stated during the debate, “The wealthy won’t leave due to income tax. They’ll pay more elsewhere.” Yet, Schultz’s decision to relocate starkly contradicts this claim, providing a real-world counterpoint to the idea that affluent individuals will stay put regardless of tax burdens.
In his announcement shared on LinkedIn, Schultz reflected on his journey from New York City to Seattle in 1979. He noted the start of a new life, both personally and professionally. Seattle became the backdrop for Starbucks’s iconic growth, transitioning from a single store selling whole bean coffee to a global coffeehouse giant. He credited the foundational support of the Pacific Northwesterners for the company’s success, emphasizing the strong community ties he once nurtured in Seattle.
Schultz has made it clear this move is part of their “retirement phase.” He expressed excitement about the next chapter of life, stating, “We are enjoying the sunshine of South Florida and its allure to our kids on the East Coast as they raise families of their own.” This decision also signifies a retreat from the social and political climate of Washington state, where Starbucks has increasingly been associated with progressive agendas.
The Schultz family’s legacy in Seattle is significant, marked by philanthropy and community engagement through the Schultz Family Foundation. Established in 1990, the foundation has focused on aiding those in need within their local community. As Schultz moves forward, he has assured that the foundation will continue its operations in Seattle, reaffirming his connection to the city and its challenges, even from afar.
In his farewell, Schultz expressed gratitude for the memories and relationships built during their time in Seattle. He concludes with a hopeful note for the future of Washington, stating, “It is our hope that Washington will remain a place for business and entrepreneurship to thrive.” His departure, spurred by rising taxes, speaks to broader concerns about the implications of increased taxation on business leaders and their long-term commitments to specific states. As tax policies shift, the broader impact on businesses and communities may well be felt for years to come.
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