Seattle Mayor Katie Wilson brushed off concerns that higher taxes could drive wealthy residents out of Washington, even joking about the idea during a public event earlier this month.
Speaking at Seattle University on April 14, Wilson responded to a question about progressive taxation by downplaying warnings that millionaires might relocate. She said those concerns are exaggerated and added, with a laugh, that if some do leave, that’s fine. Her comment drew laughter and applause from the audience.
Wilson made it clear she doesn’t see progressive taxes as a simple fix, but said she remains supportive of policies like the state’s new tax targeting high earners. At the same time, she acknowledged that Seattle’s current tax system leans heavily on regressive sources, meaning lower-income residents often shoulder a larger burden relative to their income. Her administration, she said, is actively exploring ways to shift toward a more progressive structure.
Still, she noted there are limits. One concern is keeping Seattle competitive with nearby cities like Bellevue, especially when it comes to business costs. If operating in downtown Seattle becomes significantly more expensive than in neighboring areas, that could create its own set of problems.
Wilson also emphasized that any new tax ideas should avoid discouraging hiring. As the city faces a sizable budget gap, she said officials are looking closely at both revenue and spending. That includes reevaluating existing programs and being willing to cut those that aren’t delivering results.
She pushed back on the assumption that a progressive approach automatically means more spending across the board. In her view, it also involves making decisions about what not to fund. Even so, she suggested the city may ultimately need to bring in additional revenue to close its budget deficit.
Wilson, who took office after defeating incumbent Bruce Harrell in November 2025, has drawn comparisons to New York City Mayor Zohran Mamdani. Both have aligned themselves with democratic socialist ideas and have supported policies like government-run grocery stores, a proposal that has sparked debate and criticism.
Meanwhile, questions about Seattle’s business climate have continued to surface. A recent report from Fox 13 Seattle suggested the city could lose hundreds of millions in tax revenue as companies expand elsewhere. Starbucks, for example, announced plans to invest $100 million and add 2,000 jobs in Nashville instead of Washington.
Wilson has previously been openly critical of the company. After her election win, she joined a protest involving Starbucks workers and publicly encouraged others to boycott the brand.
All of this comes as Seattle already holds one of the highest combined state and local sales tax rates in the country, currently at 10.35 percent. That figure edged up after a small increase in King County aimed at funding cultural programs through local nonprofits.
