Even Washington State Democrats are Learning that Millionaires can Leave the State

A Seattle Times article shows that 35% top estate tax rate may lose revenue

Photo by Michael Discenza on Unsplash

Washington state legislature passed major estate tax changes last year (we had previously posted on this) increasing the top estate tax rate to 35% on estates worth $9 million (after a $3 million exemption).

The Seattle Times is now reporting that these progressive Democrats are learning exactly how easy it is for a billionaire or millionaire to simply move out of the state to another state to escape the estate tax.

Not only can they escape the estate tax, if they move, they now escape the recently passed increase to the capital gains tax which imposes a top 9.9% tax on capital gains. By simply moving out of state, those taxpayers with large gains trapped in Microsoft and other equity investments are now free to sell the stock and pay no Washington State capital gains tax.

The bottom line is there becomes a point where the “progressive” increases in taxes will drive even progressive democrats out of high tax states and Washington state is coming to realize this.