Seattle mayor shrugs at millionaire exodus over new tax: “the ones that leave, like, bye” — what that means for Washington and Walla Walla
Seattle Mayor Katie Wilson shrugged at warnings that Washington’s new 9.9% millionaires tax will spur an exodus, saying “the ones that leave, like, bye,” comments that stirred debate amid Seattle’s budget shortfall and policy options.
Key takeaways
- Event and quote: At Seattle University Conversations, April 14, 2026, Wilson called warnings of a millionaire exodus “super overblown” and quipped, “the ones that leave, like, bye.”
- Policy: The dispute centers on Washington’s new millionaires tax — a 9.9% levy on income over $1 million — and city-level progressive revenue options Wilson is studying.
- Budget context: Seattle faces a large structural budget deficit; Wilson’s office is weighing revenue and program cuts while seeking measures that don’t raise hiring costs.
- Evidence: No independent data as of mid-April show a clear wave of millionaires leaving tied directly to the tax.
Main story
Seattle event and the quote that drew attention
At the April 14 conversation, Wilson was asked about progressive taxes as a fix for Washington’s regressive tax code. She said such measures are not simple but expressed enthusiasm for the state’s new law and dismissed alarm over migration.
“I think the claims that millionaires are going to leave our state are, like, super overblown. And if — the ones that leave, like, bye.”
Her remark drew laughter and cheers at the Seattle University Conversations event, but also prompted criticism from business and tech leaders who fear tone and policy risk.
Background: Wilson’s record on progressive taxes
Wilson, elected mayor in November 2025 and identified publicly as a democratic socialist, has a history of supporting progressive revenue. She helped design Seattle’s JumpStart payroll tax (2020) and has pushed proposals including expanded payroll levies, a $30 minimum wage, vacancy taxes on empty offices and capital-gains-like measures where legally feasible.
Her campaign materials argue progressive taxes can shift burden away from low-income households and fund core services; see the campaign’s progressive revenue page for details.
Legal and political limits
Washington’s history includes legal barriers to statewide income taxes; past attempts to tax high-income households have faced lawsuits and constitutional questions. Advocates note city- and county-level tools may offer more flexibility within existing constraints.
Reaction from business and tech communities
Tech industry critics and downtown business leaders called Wilson’s “bye” comment cavalier. They warn it may signal underestimation of risks tied to higher business costs, especially amid elevated office vacancy rates downtown and competition from nearby cities like Bellevue.
Supporters counter that there is little concrete evidence showing millionaires fleeing because of the tax; they argue progressive revenue can improve fairness without triggering a damaging exodus.
Budget pressures in Seattle
Wilson warned of a large structural budget deficit, saying her budget office is optimizing revenue and cutting ineffective programs. She emphasized being progressive does not mean continuing to layer on spending, and she signaled openness to ending programs that fail to deliver results.
No clear data yet on who leaves
Analysts note migration patterns often lag law implementation; as of mid-April there was no independent data clearly linking the new tax to a wave of millionaire departures. Wilson calls warnings “super overblown,” but observers say the debate will hinge on future migration and economic indicators.
Policy tools under consideration
Wilson’s office is examining city- and county-level measures such as:
- payroll taxes and professional services levies;
- vacancy taxes on empty office space;
- capital-gains-like approaches where legally permitted — while avoiding measures that raise the cost of hiring.
Implications for Walla Walla, Washington
Economic impact
Walla Walla’s economy — driven by agriculture, wineries, tourism and small business — could feel ripple effects. If higher-income households or remote workers move from Seattle to smaller cities, Walla Walla might see inflows in housing demand and local spending. Conversely, statewide tax changes could raise costs for businesses operating statewide or tighten state budgets that support rural programs.
Political consequences
For conservative voters in Walla Walla, Wilson’s remarks may validate concerns about urban leaders prioritizing progressive revenue over business-friendly policies. Local leaders could push for state safeguards for rural economies or vote on measures affecting taxation and regulation.
Social effects
An influx of higher earners could alter housing demand, school enrollment and service needs in Walla Walla — boosting short-term tax revenues but potentially pressuring affordability and community character. Alternatively, higher business costs could dampen regional investment and employment tied to supply chains.
Cultural relevance
Walla Walla’s small-town identity and winery culture may be tested by demographic shifts. Local officials will need to balance courting newcomers with preserving affordability and character; the Seattle debate could influence local planning and economic strategies.
Practical applications for residents
- Small businesses: Monitor potential state and city tax changes that could affect payroll costs and consumer demand (progressive revenue).
- Homebuyers and renters: Watch housing-market signals; an influx of higher earners could push prices up.
- Local officials: Seek clear data on migration and economic impacts as leaders implement or expand progressive taxes.
