WSJ: A Tech Tax Revolt Against Democrats
The Wall Street Journal editorial board has covered a letter from Washington state tech industry leaders regarding likely talent flight if the state imposes a state income tax. From the article:
Washington state Democrats have plunged ahead with plans for a new income tax despite public opposition and their own state constitution. A new letter from tech leaders lays out the damage the tax would do to the state’s economy.
“As experts and innovators in the field of artificial intelligence, we write to strongly encourage you to pause the state’s efforts to create a state income tax and increase the capital-gains tax,” a dozen tech leaders write to Gov. Bob Ferguson in a letter we’re told will be released on Monday.
Tax hikes “would materially undermine Washington’s ability to keep growing the tech sector, which is a core driver of our economy, and would slow the AI innovation and investment momentum,” the letter says.
That’s an understatement. A recent survey by the Association of Washington Businesses found that more than twice as many businesses report they may leave the state since the tax increase plan was announced. Forty-four percent of business owners also reported they are considering moving their personal residence out of Washington.