Former Starbucks CEO Howard Schultz is ditching his longtime residence in Seattle for Florida, just as Washington Democrats are nearing the finish line on a proposed "millionaires tax."
Schultz, who served as board director of the coffee chain until 2023, said in a statement on social media that he and his wife are moving to Miami as part of the "retirement phase" of their lives. Schultz, who has lived in Seattle for more than four decades, purchased a $44 million penthouse in Surfside, Fla., according to reports, and will relocate his private family office to Miami.
Schultz, who owns roughly 24 million shares of Starbucks, is the latest billionaire to move to Florida and other low-tax red states. Oracle cofounder Larry Ellison and Google cofounder Larry Page are fleeing California for Florida as lawmakers in the Golden State have pushed to impose a 5 percent tax on the assets of anyone worth more than $1 billion. Amazon founder Jeff Bezos also moved to Florida from Washington state in 2023. Elon Musk moved from California to Texas, which has no state income tax, in 2020, and announced plans in 2024 to relocate his companies Tesla and X to the Lone Star State.
Schultz's move comes as Washington Democrats are poised to enshrine into law the "millionaires tax," which would impose a 9.9 percent tax on income greater than $1 million. Washington does not have a personal income tax, though it does have a hefty 9 percent tax on capital gains for high earners. The state house passed the bill on Tuesday, sending it back to the senate for a final vote.
Washington Gov. Bob Ferguson (D.) has said he will sign the tax increase, saying he would use the revenues to increase spending on K-12 education. The Washington Education Association, the teachers' union, lists "Tax the ultra-rich" as its top legislative priority. The state is already in the top 10 in the nation in per-student spending, but in the bottom 10 in the nation in demographically adjusted results on standardized tests.
The Tax Foundation has warned that "the proposed tax would yield a top rate of more than 18 percent in Seattle when combined with two Seattle wage taxes and a statewide uncapped payroll tax, making it the highest rate on wage income in the country."
"Fundamentally, whatever its finer points, this is a high-rate income tax in a state that already imposes aggressive taxes on businesses," the Tax Foundation said. "With this legislation, Washington would double down on being a high-tax state, particularly for businesses and for some of its most mobile taxpayers."
Starbucks, which Schultz purchased in 1987, also plans to open an office in Tennessee, which has no state income tax. The company will relocate dozens of positions to Nashville from Seattle as part of the expansion, the Wall Street Journal reported.
Ira Stoll contributed to this article
