Former Washington Governor Criticizes State Tax Policies at Business Summit

Former Washington Gov. Christine Gregoire said the state legislature does not understand the impact of its tax policies. She spoke at the Association of Washington Business 2026 Spring Summit on May 6.

Gregoire, who served as governor from 2005 to 2013, was asked whether she believes the legislature understands the impact of its economic policies. "No, I really don't, as evidence by, you mentioned the estate tax," Gregoire said. "I argued with some folks about the estate tax.

We were the highest in the country, tied with Hawaii at 20%. We went to 35%. We’re not just the highest. " Though Washington’s estate tax was raised to 35%, a recent bill passed in April has since rolled back the rate to 20% after backlash.

Gregoire continued, "And I said now, you understand the consequences of this? Can I see your fiscal note? Because I’d like to help it. Because here’s what you can expect. Those people are not homeless.

They will not pay. They’re leaving. " "When they leave, they stop giving significantly to philanthropy, which would otherwise be necessary by government. So you understand, do you see the consequences of what you’re doing?

And the answer is no," she said. Gregoire also called out Democratic state House members for a lack of business experience in understanding the impact taxes have on small businesses. "I would suggest to you, we don’t really have an income problem," she said.

"We have a spending problem, and we’re answering it by stacking one more tax, one more rule, one more regulation. And the one thing that the business community doesn’t need is that lack of predictability. That’s how businesses grow, that’s how they thrive.

" Pushed through by the Democratic majority during the 2026 session, the millionaires’ tax imposes a 9.9% tax on annual income exceeding $1 million for individuals or households. While the tax was signed in March 2026, it is not scheduled to take effect until Jan. 1, 2028, with the first payments due in 2029.

After the tax was passed, Starbucks, which originated in Seattle, announced that it would be moving 2,000 corporate jobs to a new regional headquarters in Nashville, Tennessee. The tax also came as Seattle Mayor Katie Wilson, a self-described socialist, faced criticism for her dismissive attitude toward the idea of millionaires leaving the state.