Former Starbucks CEO Howard Schultz leaves Seattle as local lawmakers mull millionaire tax

Former Starbucks chief executive Howard Schultz recently announced in a LinkedIn post that he and his wife are relocating from Seattle to Florida after more than 40 years in the city. Schultz played a pivotal role in transforming the coffee chain into a global brand during his tenure.

The decision to move comes amidst the advancement of a millionaire tax by Washington state lawmakers. The proposed tax would impose a nearly 10% annual tax on personal earnings exceeding $1 million. While Schultz did not explicitly mention the wealth tax in his announcement, he expressed his hope that Washington state would continue to foster a conducive environment for business and entrepreneurship.

The debate surrounding wealth taxes has intensified, with concerns about high-income residents potentially relocating to states with more favorable tax laws. In California, a proposed ballot initiative aims to implement a one-time 5% tax on the state’s estimated 255 billionaires, a move that has sparked fears of a mass exodus of ultra-wealthy residents.

Schultz and his wife have chosen to settle in Florida, a state known for its lack of personal income tax, as they embark on their retirement journey. Their decision is influenced by the state’s tax laws and the appeal of South Florida’s sunshine to their family.

Washington state, despite being predominantly controlled by Democrats, currently does not tax wages or salaries, although certain investment proceeds are subject to taxation. The wealth tax is intended to address budget shortfalls and support initiatives such as providing free K-12 school meals.

Governor Bob Ferguson, a Democrat, has thrown his support behind the wealth tax, emphasizing the importance of fair taxation in the state. Schultz, whose net worth is estimated at $6.6 billion, recently purchased a penthouse in Surfside, Florida, showcasing an ocean view, five bedrooms, a central courtyard, and a rooftop terrace.

While Schultz’s private family office and investment firm will be based in Miami, the Schultz Family Foundation will continue to operate in Seattle. Schultz expressed gratitude for the memories and relationships forged in Seattle, highlighting the significance of his time in the city.

The move to Florida signifies a new chapter for Schultz and his family, as they embrace the opportunities and lifestyle that the Sunshine State has to offer. As they embark on this new adventure, Schultz remains committed to his philanthropic efforts and business pursuits, albeit in a different location.