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Washington business owners fear socialist ‘millionaires tax’ is driving businesses out — and they’re next

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SEATTLE—Business owners in Washington state are worried that the recently passed “millionaires tax” will drive economic activity out—and even target them next. 

“There’s a lot of fear and trepidation with what’s going on in our government when it comes to taxes,” Matt Humphrey, a Seattle barber who has locations in the Ballard and Roosevelt areas, told Fox News Digital. 

“This new millionaire’s tax is definitely going to impact us,” Humphrey said. “We’re afraid… they treat us a bit like an ATM when it comes to paying out taxes as a small business.” 

Steve Gordon, principal of Gordon Truck Centers, a truck dealer in Pacific, Washington, said he is concerned that the millionaires tax will eventually make its way to those who are not in the millionaire income bracket. 

“The income tax is the latest kind of battle that’s happened here recently,” Gordon said. “But while they frame it as it’s just a tax on millionaires, I mean that’s stacked on a whole bunch of other taxes and there’s nothing to keep it from expanding to regular citizens. And I think a lot of regular folks realize that what might be just for millionaires today supposedly will be coming for them later as they broaden that tax base.” 

MAMDANI’S ESTATE TAX PLAN COULD DRIVE WEALTH OUT OF STATE, CRITICS WARN

Washington state Democrats last month passed the “millionaires tax,” which Democratic Gov. Bob Ferguson signed March 30. It’s the state’s first-ever income tax, celebrated by progressives and socialists and opposed by conservatives; the Wall Street Journal editorial board called it a “con” after its passage that will “inevitably capture the middle class.”

The new tax will impose a 9.9% income tax on households earning more than $1 million each year. T tax applies to any money earned after the first $1 million of someone’s annual income. It will take effect on Jan. 1, 2028, with the first payments due in April 2029, KOMO News reported. 

“Adoption of the historic Millionaires’ Tax makes our tax system more fair, and means free meals for K-12 students, the largest tax break in state history for small businesses, eliminating the sales tax for baby diapers, and sending a check to nearly 500,000 working families to make life more affordable,” Ferguson said at the time.

His office touted that the new tax “sends significant revenue back to Washington families and small business owners.”

But not everyone is thrilled.

“They’re all concerned. Everybody’s concerned,” radio host Ari Hoffman told Fox News Digital.

“And it doesn’t matter what kind of business you have, because as I mentioned before with regards to Amazon, if you’re a barber and you were reliant on the Amazonians as your customers, now you don’t have them anymore. You don’t have a barbershop anymore. There were a lot of places that opened up in South Lake Union where Amazon was specifically for Amazon, and they had to close shortly thereafter.”

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570 KVI reported Wednesday that Socialist Seattle Mayor Katie Wilson is suggesting she might be pursuing additional taxes on the wealthy and big business. 

“Speaking at a community forum Friday night, Wilson said her administration is exploring new ‘progressive revenue options’ to help close a projected $140 million city budget gap in 2027,” the outlet reported, quoting Wilson who said, “My team is very hard at work looking for progressive revenue options, taxing the rich, taxing big business in a way that we think will be politically viable and practical.” 

The city of Seattle, according to the Tax Foundation, has the highest combined state and local sales tax rate, sitting at 10.35%. 

The organization points out that Seattle surpassed the city of Tacoma, Washington, which had a 10.3 percent tax rate, when King County, where Seattle is located, adopted a 0.1% additional sales tax to generate additional revenue for nonprofits providing cultural programming.

“I pay two different B&O taxes, a state B&O tax, a city B&O, I pay sales tax,” Humphrey told Fox News Digital.

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“They want to tax me on all my equipment that I use here annually, that I’ve already paid sales tax on,” he said. “They come up with the highest minimum wage in the state, if not in the country, that I’m aware of. So the cost of labor, the other thing is our relationship with labor. They put us in a very vulnerable position when it comes to actually being an employer. It doesn’t favor the employer.”

Washington State’s Business & Occupation (B&O) tax is the Evergreen State’s primary business tax. It is unusual because it is charged on gross receipts, or total revenue, rather than profit, meaning that businesses must pay the tax even if they lose money.

Several Washington cities have a higher minimum wage than Seattle’s $21.30 per hour, including Tukwila at $21.65 for large employers and Renton at $21.57.

“Amazon used to be bustling,” Hoffman told Fox News Digital. “It was like when I would go down there, I felt like it was in Manhattan. I couldn’t find a parking spot anywhere. And now, no problem, I can park wherever I want. It’s really sad.”

FROM ‘JUMP ON A BUS’ TO TAX CRACKDOWNS: BLUE STATES CHASE WEALTHY RESIDENTS FLEEING TO RED HAVENS

On Feb. 24, Amazon told GeekWire that it would not renew its lease at 1915 Terry Ave in the Denny Triangle area of downtown Seattle, which had occupied the space for 12 years. 

GeekWire reported that the company is growing its presence outside downtown Seattle in Bellevue, located in King County, Washington, across Lake Washington from Seattle. 

It has opened new office buildings and plans to have 25,000 employees as part of its regional headquarters.

“I mean, I look at my own community,” Hoffman said. “When you had a lot of people who lived here specifically for the tech world, and in 2020 they were told they could work remotely, a lot of them went elsewhere and were still collecting a Seattle salary and then found jobs in those other places. They never came back. The jobs aren’t going to come back magically. These taxes, these policies are scaring people off and a lot of people are leaving.”

Starbucks is another company appearing to lessen its Seattle presence, confirming in March that it will be closing five additional stores in the city. That follows several closures in 2025, including the Starbucks Reserve Roastery on Capitol Hill. 

Additionally, in a March post on LinkedIn, former Starbucks CEO Howard Schultz announced that he and his wife moved to Florida for their “retirement phase,” leaving Washington state after almost half a century.

GRADUALLY, THEN SUDDENLY, BLUE STATE AMERICA IS HEADING FOR FINANCIAL DISASTER

While Schultz did not mention the millionaires tax, some, like Gordon, speculate his departure could have been due to it. 

“It was pretty ironic that Howard Schultz, who definitely has been a person of the Left nationally with his political profile, announced the day that they approved that income tax in our legislature, he made the announcement that he was leaving for tax-free Miami, Florida,” Gordon said. 

“So I don’t think that was a coincidence,” he went on. “And for people that have watched Jeff Bezos leave and other prominent members of the Seattle business community, you start to see a trend there that’s unavoidable that the leaders of the businesses are leaving and the businesses themselves are relocating. Starbucks headquarters, for instance, has just opened up a new second headquarters in Tennessee and the speculation is they’re eventually going to move all of their employees out of their Seattle headquarters to Tennessee.”

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But State Rep. Shaun Scott of Seattle, a member of the Seattle Democratic Socialists of America since 2017, told Fox News Digital that he doesn’t want to engage in hypotheticals about the future of the millionaires tax trickling down to the less wealthy.

“Well, it’s very difficult to legislate with hypotheticals and to legislate thinking about what may happen 10, 15, 20 years down the line in a legislative body that I may not even actually be a part of,” Scott said. 

“I believe that it is our role as state lawmakers to legislate according to the issues that are impacting us while anticipating ones that might come down the line,” he added. 

Scott continued, “And the fact of the matter is that right now in Washington state we have galling wealth inequality. And underfunded public institutions. And the way that that is reconciled is through basic arithmetic. People who have more could afford to be paying more into the system. And when that happens, I think that Washington will be an even more competitive place to live, work, and do business than it is at present.”

CORPORATE AMERICA IS ON THE MOVE, AND THESE RED STATES ARE CASHING IN

Scott said he believes “taxing the rich” is popular among both Republicans and Democrats. 

“Well, taxing the rich and the idea of taxing wealth in order to fund services that we all use, make no mistake about it, this is about as popular a policy position in Washington state as any other,” Scott said.  

“As a matter of fact, it is, I would venture to say, the most popular position that somebody could take,” Scott added. “In the November 2024 election cycle here in Washington state, approaching two-thirds of Washington state voters statewide cast their ballots in favor of a capital gains tax upholding our capital gains tax, which funds early learning K-12 schools and child care in our state. So when you talk about taxing the rich in our state, that is something that is staunchly supported in very red conservative legislative districts as well as very progressive blue legislative districts like my own.”

Vijay Boyapati, a former software engineer for Google, moved to Seattle in 2006 from California to escape high taxes there.

He told Fox News Digital that he sees taxes consistently rising in the state without “results.”

“Taxes have gone up constantly over the last decade. They’ve almost doubled from about ten years ago, but educational results are much worse, so the money isn’t producing the results that they say it will produce,” Boyapati said.

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“So the question really needs to be, why are we not getting better results? he asked. “I think we need to look at why our school systems are failing, why 8th graders, for instance, have like a 70% rate of illiteracy and really poor scores on math, those are really important things to look at and throwing more money at it hasn’t solved the problem, so I think we need to kind of address the problem first before throwing more at it.”  

A June report from the Washington State Standard found that, “More than two-thirds of the state’s 4th graders failed to meet reading standards, and 70% of 8th graders weren’t proficient in math last year.” 

Boyapati also said friends of his are leaving the state because of the tax climate.

“I have friends who’ve left to Texas, friends who left to Miami, friends who’ve left to Wyoming,” he said. “And it’s all for the same reason. It’s because Washington really went very far left in the last four years, and the policy changes have been really dramatic and that caused a lot of my friends to leave, unfortunately.” 

Humphrey, the Ballard barber, said that he would warn others about something similar happening in their state. 

“What I would say to the rest of the country is don’t let this happen to you,” Humphrey said.

VIRGINIA DEMOCRATS SEEK DOZENS OF NEW TAX HIKES, INCLUDING ON DOG WALKING AND DRY CLEANING

“Don’t become so compassionate around these issues that sound good and don’t not do your homework,” Humphrey added. “Please look. Look closely at the taxing of small businesses. You can’t, you know, what we’re doing here in the state – going against the Constitution for an income tax is a terrible decision, and it’s going to snowball right towards us, right? I’m next. I’m the next in line. I don’t make a million dollars a year for sure, but I’m in line for them to come after for a state income tax. And I guarantee you, I can’t afford that.” 

In a statement to Fox News Digital about its Seattle presence, Starbucks said, “We regularly review how our coffeehouses serve their neighborhoods and if they are meeting customers where they are. Sometimes that means investing in updates or trying new formats.” 

The company added, “Other times, it means making the difficult decision to close a location that no longer fits how people in that community live, work, or gather. These choices are never easy — especially here at home — but they’re an important part of focusing on what we do best and delivering on our Back to Starbucks strategy.” 

An Amazon spokesperson told Fox News Digital in a statement that, “Amazon employees will be moving out of 1915 Terry Avenue at the end of May when our lease expires and relocating to other Puget Sound headquarter offices.” 

Fox News Digital reached out to former Starbucks CEO Schultz, Seattle Mayor Katie Wilson, and Gov. Bob Ferguson for comment. 

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Christmas Vacation and Congress: ‘We’re all in misery’ amid the ongoing DHS shutdown

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April 12, 2026

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If you thought the Congressional appropriations process couldn’t get any worse, I present you with 2026. And perhaps beyond.

The Department of Homeland Security remains shut down, running on pocket lint, nickels lost between the couch cushions and faded S&H Green Stamps (look ‘em up, kids). Congress hasn’t funded DHS for two months. House Speaker Mike Johnson, R-La., torqued himself into a political pretzel – opposing, then supporting, then not acting on – a Senate-approved package to fund most of DHS.

As we always say, it’s about the math, and when it comes to DHS money, it appears that lawmakers have locked a box to which they lack the combination. There is apparently no sequence of votes in the House and Senate which can crack the DHS safe as a traditional, standalone appropriations bill. 

REPORTER’S NOTEBOOK: WHY TRUMP MAY NOT BE ABLE TO FORCE CONGRESS BACK OVER THE DHS SHUTDOWN

Now, Congressional Republicans and President Donald Trump are turning to one of the few methods which might work to fund DHS – something called budget reconciliation.

The Congressional budget reconciliation process is not customarily used for appropriations bills – although lawmakers can plug the measure with money to spend on federal programs. However, reconciliation is inoculated from filibusters. Thus, Republicans don’t need 60 votes. They can – ostensibly – pass a DHS bill on its own without help from Democrats if they hold their narrow coalitions together in both the House and Senate.

Congressional Republicans intend to stuff this reconciliation package with only money for ICE and Customs and Border Patrol. Nothing for disaster aid. Nothing for farmers. Nothing about the SAVE America Act. The president agrees. The goal is to finish this by June 1 – months after the latest DHS funding lapse.

But it’s more complicated than that. 

GOP INFIGHTING REPLACES CLASH WITH DEMS, DERAILS PATH TO END HISTORIC DHS SHUTDOWN

The House and Senate must take a number of steps to approve a shell of a budget resolution in order to have the filibuster-proof reconciliation tool available to them. Republicans undertook a similar endeavor last winter and spring. It was absolutely harrowing and consumed months before finally approving the One, Big, Beautiful Bill, via reconciliation. Republicans don’t have that kind of time now. Then again, DHS has either been unfunded or held together by interim spending bills since last October.

We haven’t even mentioned how Trump is using a somewhat dubious authority to pay TSA workers and others from other funds – without Congressional approval.

That leaves some to question why the administration didn’t do this to start with. But the bigger issue is an alarming pattern of Congress ceding its most precious prerogative – the power of the purse – to the executive branch. That’s to say nothing as to whether Trump’s gambit to pay workers is even Constitutional. And, it establishes a precedent which may be hard to ignore during other funding impasses.

However, here’s the bigger problem: the Congressional paralysis to pass appropriations bills on a timely basis. That’s been an issue for years now.

Historically, Congress has missed the Oct. 1 fiscal deadline, relying on “Continuing Resolutions” (CR’s) which simply renew all funding on a temporary basis. Or, lawmakers cobble together a set of the 12 annual spending bills in a “minibus” appropriations package. Lawmakers who might oppose an individual bill are willing to support a group of bills – because there’s something in there which they like or support.

But turning to reconciliation as a way out of the appropriations box canyon is also another precedent which likely agitates Congressional appropriators. Sure. They’ve done that before. And in this instance, it might finally get DHS funded. But what does this mean for the future?

Which brings us to Oct. 1, 2026. That’s when the federal government pivots from Fiscal Year 2026 to start Fiscal Year 2027. 

Congress has struggled to fund the federal government since early 2025, when it began work on appropriations bills for this year. The FY ’26 funding crisis – which spawned the record-breaking, 43-day, government-wide shutdown in the fall, another partial government shutdown last winter and the current DHS stalemate – has been an issue since lawmakers were working on bills for this cycle around this time LAST spring. So how pray tell is Congress going to avoid a shutdown THIS autumn for FY ’27?

In fact, few are even speaking about that possible peril – because no one can wrap their heads around the present appropriations saga. And it’s possible that this fall’s problems could be worse than last fall’s impasse. The reason? The midterm elections hit in November. It’s doubtful that either side will be willing to make much of a deal right before voters head to the polls.

The scenarios are frightening to fathom, so people are just kind of ignoring them.

SEE IT: LAWMAKERS CAUGHT ON VACATION AMID RECORD-BREAKING SHUTDOWN WHILE DHS WORKERS GO UNPAID

We have entered a new period of semi-perpetual funding standoffs – exacerbated by mistrust between the sides, narrow Congressional margins in both the House and Senate, parliamentary mathematical equations which don’t balance and an unwillingness by Trump to broker deals or even negotiate with Democrats.

Yes. They have options to cover DHS into next year, but it’s the other 11 spending bills which could be problematic.

Imagine trying to pass a defense spending bill which has a price tag 44% higher than the one last year? Or tacks a bunch of money on for the war in Iran?

Where’s the vote combination to approve a CR, let alone an individual bill? Will Senate Minority Leader Chuck Schumer, D-N.Y., be willing to help Republicans hit the 60 vote threshold to fund things? Especially if he sees the possibility of emerging again as Majority Leader? Probably not.

And let’s say Democrats win the House, Senate or both in the fall? Do you really think these spending standoffs get better over the final two years of Trump’s term?

Back to Chevy Chase and Clark Griswold. There’s a second part to that iconic quotation from Christmas Vacation: “We’re at the threshold of hell!” he declares.

Pretty funny, but not if you’re trying to keep the government open after the adventures of the past year. This is not hilarious to millions of federal workers who suffer from paycheck PTSD. Another round of spending mayhem could only erode further trust between federal workers and their employers. It will damage morale – which is already subterranean. That’s to say nothing of courting people to work for the government.

Yes. Things can get a lot worse. The political schisms are deep and the vote matrices to pass the bills simply don’t exist.

It may be spring, but the Christmas Vacation movie provides insight into where we stand with the Congressional appropriations bills: “It’s Christmas and we’re all in misery,” declares Ellen Griswold, played by Beverly D’Angelo.

Yeah. And wait to see what Congress has in store for THIS Christmas.

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Trump greeted at UFC 327 in first sporting event appearance since start of Iran war

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April 12, 2026

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President Donald Trump was greeted by a packed crowd at UFC 327 in Miami Saturday night during the president’s first appearance at a sporting event since the start of the Iran war. Fans in attendance erupted into raucous applause as Trump walked into the venue. 

Trump made his way out with UFC CEO and president Dana White and went around to the announcers and had an exchange with Joe Rogan, who was sitting at the announcers’ table. 

Secretary of State Marco Rubio was standing nearby the seats right before Trump walked out, then leaned in to Trump and started whispering very closely to the president, cupping his hands over his mouth and they each exchanged a few words. Trump then turned around, pumping his fist to those sitting behind him, smiling and waving, then pointed a few times to the crowd. 

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Trump has been a frequent fixture at UFC and other combat sports events during his presidency, during his 2024 campaign and even dating back to his first term.

In 2025, Trump attended UFC 316 and Miami fight night. In 2024, he attended UFC 302 in June and UFC 309 in November.

In 2019, he attended UFC 244.

Before Saturday, the last major sporting event Trump attended was the College Football Playoff national championship game between Indiana and Miami at Hard Rock Stadium Jan. 19.

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Trump was notably absent from this year’s Super Bowl and the Winter Olympics in Italy and didn’t attend any other events after the Iran war broke out.

But after Tuesday’s ceasefire agreement, Trump has returned to sport. Trump addressed the ongoing situation with Iran at the White House before departing for Joint Base Andrews to travel to Miami for the UFC event.

“We’re in very deep negotiations with Iran. We win regardless. We’ve defeated them militarily,” Trump told reporters. “Whether we make a deal or not makes no difference to me. And the reason is because we’ve won, whether you listen to the fake news or not.”

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Heather Graham says classmates dismissed her as ‘nerdy’ before Hollywood breakthrough proved them wrong

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April 12, 2026

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Before Hollywood came calling, Heather Graham said, she was dismissed as a “nerdy” teenager.

The actress recalled being underestimated in high school before landing the popular cheerleader role in “License to Drive,” a turning point she described as a “huge moment” that launched her independence and her career.

“I was nerdy. … You know, I was smart, and I was just, like, nobody thought I was that pretty,” Graham recalled during an episode of “Dinner’s on Me with Jesse Tyler Ferguson.” 

HEATHER GRAHAM SLAMS ‘AWKWARD’ NEW REALITY OF HOLLYWOOD SEX SCENES

“So, I got this job as, like, the popular, pretty cheerleader, and I had very bad style and bad hair and makeup. Like, I did not know how to, like, do that. And then people were like, ‘Oh?’

“[The movie] came out right as I was graduating,” Graham added. “And I think people were like, ‘Well, maybe we should have paid attention to her.'”

Graham revealed landing the iconic role as Mercedes Lane in “License to Drive” was a “huge moment” for her at 17.

“It was huge for me. Like, that was a huge moment,” she explained. “I got to make money. I was independent. I had a bank account, you know, and I could live on my own.”

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Graham began her career with small roles in commercials and TV before landing teen films such as “Drugstore Cowboy” and “Swingers.”

She got her breakthrough with “Boogie Nights,” “Austin Powers: The Spy Who Shagged Me” and “Bowfinger.”

Graham landed a role in the blockbuster film “The Hangover” in 2009. She has since continued acting in films and TV while also expanding into writing and directing projects.

Her latest film, “They Will Kill You,” hit theaters March 27.

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The 56-year-old actress shared some of her beauty secrets in a recent interview with Us Weekly.

Graham claimed she’s “never had an actual operation where they’re cutting my face open.” But she said she has tried a series of other methods, including “microneedling, Botox … and a bunch of lasery things.”

“Some of those laser treatments are torture,” she said. “Like, an hour and a half of your face getting blasted.”

The movie star’s goal is to stay away from invasive plastic surgery because she doesn’t “want to look freaky,” and her “goal is to look natural.”

“I feel like some people get facelifts and they just kind of end up looking like … I mean, there are people that get it, and it’s good. But I just don’t want to be one of those people that got it and look freaky,” she said. “But I don’t know if [when] I got older, I wouldn’t completely rule out. Who knows, in the future.”

Graham also tries to maintain a balanced diet and get 10 to 11 hours of sleep. She said she uses yoga as a way to stay in shape and manage stress, calling it “so cathartic.”

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