Former Starbucks CEO Howard Schultz has left Washington for Florida as state lawmakers consider a "Millionaires Tax" on high-income earners.
Schultz announced the decision in a post on LinkedIn, explaining that he and his wife Sheri have entered their "retirement phase" and started a new life in the Sunshine State.
"Like many other Seattle-based companies, Starbucks today stands on the shoulders of the many Pacific Northwesterners who built the company,"
Schultz wrote. "They helped shape the culture, the benefits and the brand, contributing to the civic, community and public life of the city and state. It is our hope that Washington will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas."
Schultz, who bought Starbucks in 1987, is credited with growing the company into the global brand with nearly 39,000 stores worldwide. The first Starbucks coffee shop in Seattle to this day remains "the most visited Starbucks in the world," according to Schultz.
Shultz, who did not directly mention the Millionaires Tax in his announcement, remains one of the company's largest individual stakeholders.
The Millionaires Tax, or
Senate Bill 6346, would generate $3.7 billion annually, according to Democrat state lawmakers, to fund public education, early learning and child care, health care, and other critical services. Less than 1 percent of the wealthiest households in the state would pay 9.9 percent tax under the narrow, targeted proposal.
“For Washington’s 1.1 million school kids, people struggling to afford health care, and small businesses looking for help, that help is on the way," Senate Majority Leader Jamie Pedersen said in a
statement.The tax will also allow for the expansion of the
Working Families Tax Credit, a sales tax rebate for Washington families with low to moderate income levels who have struggled to make ends meet. Additionally, 7 percent of the revenue collected from the tax would be distributed to counties across the state to help pay for the public defense system and strengthen public safety, Democrats said.
Republicans, on the other hand, have argued that the tax is unconstitutional and ignores the financial strain facing many families in the state.
"People in our communities are stretched thin by rising prices on fuel, groceries, and housing,” said Ybarra. “The last thing working families and employers need is a brand-new income tax waiting in the wings. Washington residents have said repeatedly they don’t want this, and we should be listening, state Rep. Alex Ybarra (R-Quincy) said in a
statement.
The House of Representatives passed the measure 51-46 Tuesday evening following a marathon, 24-hour floor debate. It now heads back to the Senate for final approval after amendments were made to the bill.
The Associated Press and Reuters contributed to this report.
