My state of Washington ignored warnings about tax hikes and now were paying the price
People said we were making it up — that corporate flight was a myth.Now we’re a cautionary tale.Washington’s largest companies knew higher taxes were coming.They warned Gov.
Bob Ferguson that they would damage the state’s business climate.Instead of heeding their warnings, he privately tried to convince them the taxes were a good thing.He clearly failed.That’s what I found from the public records.When I heard Starbucks was leaving, I couldn’t shake the feeling that something was missing.A landmark Seattle company doesn’t announce a $100 million investment in a massive new corporate hub in Nashville, begin laying off Seattle workers and hiring up to 2,000 in Tennessee without conversations happening behind the scenes.Starbucks is one of Washington’s most politically connected companies and a cornerstone of Seattle’s economy.
Surely someone had tried to stop it.So, I filed public-records requests.What came back was a paper trail that Washington voters almost never saw.The records show Starbucks had warned Ferguson in 2025 that portions of his tax package would hurt the state’s business climate.The company said taxing headquarters functions such as staffing, IT, security and advertising would “dramatically increase costs” and place it “at a competitive disadvantage to companies based in other states.”It also warned that a new business-and-occupation tax surcharge would make it harder to invest in Washington.That year, Ferguson signed the largest tax increase in state history anyway.Starbucks CEO Brian Niccol requested a meeting with Ferguson in February.
The meeting never happened.Instead, the state passed its first income tax.Months later, after Starbucks made its Nashville announcement, the governor finally reached out for a meeting.His staff prepared him for the conversation.“The Nashville acquisition and continued Washington layoffs and closures continue to raise public questions about whether the company is gradually shifting its ...