Seattle Mayor Katie Wilson brushed off warnings that higher taxes will drive millionaires out of Washington, telling a Seattle University audience on April 14 that the claims are “super overblown.” Asked whether progressive taxes were an easy and promising fix for the region’s tax climate, Wilson said she never thought they were easy and added, “And if — the ones that leave, like, bye.”
Wilson made the remarks at a Seattle University Conversations event soon after winning the mayoral race in November 2025, a victory that has drawn comparisons to New York City Mayor Zohran Mamdani because both are democratic socialists. Her comments land in the middle of a state tax fight that has put pressure on Democrats to defend a more aggressive approach to revenue without spooking employers or affluent residents.
The mayor said she was excited about the millionaire tax that passed in Washington, but argued Seattle still has “the very regressive tax system” and said her office is working through progressive taxation options. She also said the city has more flexibility than King County when it comes to taxing authority, though she cautioned that it would not help Seattle’s business environment if the cost of doing business downtown were wildly out of step with neighboring Bellevue.
Wilson tied that debate to the city’s books, saying Seattle faces a large structural budget deficit that will have to be addressed in the upcoming budget cycle. She said her budget office and budget staff are trying to use revenue “as effectively and efficiently as possible” and that being a progressive does not mean the city keeps layering on spending forever. She also said Seattle probably will not need new revenue, a notable line from a mayor who has been publicly exploring tax options.
The comments come as the city and one of its biggest employers are moving in opposite directions. Earlier this month, Fox 13 Seattle reported that the city could lose up to $750 million in tax revenue in coming years as Starbucks expands in Tennessee instead of Washington. On Tuesday, Starbucks said it will invest $100 million and bring 2,000 new jobs to Nashville.
Wilson has already shown where she stands on the company. After winning the mayoral election, she joined a Starbucks protest picket line and said, “That is why I am proud to join them on their picket line and proud to say loud and clear, I am not buying Starbucks and you should not either,” according to KUOW.
Seattle’s tax structure gives her argument sharper edges. According to the Tax Foundation, the city has the highest combined state and local sales tax rate at 10.35%, a reminder that any push for more progressive taxation will have to navigate a city that is already expensive for workers, shoppers and employers alike. Wilson’s answer on April 14 was blunt: she is looking for revenue tools that do not raise the cost of hiring in Seattle, and she does not think the millionaire exodus story is the obstacle critics say it is.
