Know Your Risk Podcast Washington’s Millionaire Tax: What You Need to Know
Apr 3, 2026
A clear breakdown of Washington’s new income tax and why it confuses residents. Early signs of capital flight and math showing when the tax could lose revenue. Who the tax actually hits, with small businesses and pass-through owners most exposed. Predictions of sizable migration and the personal stakes business owners face.
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Many High Earners I Know Plan To Leave
- Zach Abraham says out of seven high-income clients, five are definitely leaving Washington and one likely will if the tax stays in place.
- He notes his clients skew conservative but emphasizes strong bipartisan pushback and surprising defections from the political left.
Weigh Moving Against Perpetual Tax Savings
- Consider relocating if the additional tax burden exceeds the cost and lifestyle tradeoffs, because annual savings compound year after year.
- Zach quantifies his potential first-year savings at $380k–$460k and compares buying power in Phoenix.
Business Relocation Removes Multiple Tax Streams
- When a business owner leaves, they remove multiple revenue streams: income, excise, B&O, sales, property, and employees' tax contributions.
- Zach argues this multiplier effect makes losing businesses far more damaging than losing high-salary employees alone.