Former Starbucks chief executive Howard Schultz said in a LinkedIn post that he and his wife are moving from Seattle to Florida after more than four decades in the city, where he helped build the coffee chain into a global brand.
His announcement comes as Washington state lawmakers advance a so-called millionaire tax that would levy a nearly 10% annual tax on personal earnings over $1 million.
Schultz didn’t cite the wealth tax in his announcement, posted late Tuesday, about his planned move to Florida. But he wrote that he hopes Washington state “will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas.”
Flight of the millionaires?
Wealth taxes are sparking debates among lawmakers and policy experts about whether they could cause high-income residents to move to locations with more favorable tax laws.
In California, a proposed ballot initiative would institute a one-time 5% tax on the state’s estimated 255 billionaires — a move that some opponents, including Gov. Gavin Newsom, have warned could trigger an exodus of ultra-wealthy residents.
Schultz said he and his wife are moving to Florida — one of the few U.S. states without a personal income tax — as they enter retirement.
“We have moved to Miami for our next adventure together. 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,” he wrote.
Washington state is one of the few states controlled by Democrats that doesn’t tax wages or salaries, although it does tax certain investment proceeds. The wealth tax is aimed at bridging a budget shortfall and helping fund services such as free K-12 school meals.
House lawmakers in the state adopted the measure this week after an all-night session deliberating amendments to the proposal. It is now set to return to the state’s Senate, which passed a version previously.
Support from the governor
Washington Gov. Bob Ferguson, a Democrat, endorsed the wealth tax in December, saying that it would make the state’s taxation fairer. He has indicated that he’ll sign the law if the legislature can send it to him before they adjourn on Thursday.
Schultz, whom the Bloomberg Billionaires Index says is worth $6.6 billion, paid about $44 million for a penthouse at the Surf Club, Four Seasons Private Residences in Surfside, Florida, the Wall Street Journal reported on Wednesday. The ocean-view unit has five bedrooms, a central courtyard and a rooftop terrace in its 5,500-square-foot space, the Journal noted.
Schultz noted that his private family office, an investment firm that manages his family’s finances, is also located in Miami, while the Schultz Family Foundation will remain in Seattle.
“We will be forever grateful for the memories made in Seattle and the relationships built along the way,” Schultz wrote.
Alain Sherter
contributed to this report.
