One Rental At A Time Washington State Passes First EVER Income Tax
Mar 11, 2026
A fast recap of Washington State’s new 9.9% income tax on households over $1M and worries the threshold could drop. Discussion of wealthy residents relocating and how capital flees high-tax areas. Debate over housing policy effects on build-to-rent supply. Brief takes on international oil disruptions, CPI shelter measurement, and mortgage demand trends.
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Washington Implements First State Income Tax
- Washington State enacted its first state income tax targeting households over $1 million at a 9.9% rate.
- Host warns this will trigger wealthy migration (example: Starbucks founder Howard Schultz moving to Florida) and predicts threshold erosion toward $100k within a decade.
Howard Schultz Leaving Washington Example
- Host cites Howard Schultz leaving Washington for Florida as an immediate reaction to the tax.
- Uses this example to illustrate wealthy mobility and the likely exodus of other high-net-worth residents.
Threshold Slippage Expected Over A Decade
- The host predicts policymakers will lower the millionaire threshold progressively after revenue flight occurs.
- Timeline estimate: threshold could fall from $1M to $100k within about 10 years as capital leaves the state.