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By Hugh Cameron
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The former CEO and early backer of Starbucks has revealed that he will be departing from Washington in favor of Florida, hours after the state’s lawmakers advanced a tax bill targeting residents earning over $1 million a year.
Howard Schultz, who purchased the company in 1987 and helped expand it into the globally recognized chain it is today, made the announcement in a post to LinkedIn on Tuesday, writing that he and his wife Sheri had moved to Miami “for our next adventure together.”
Newsweek has contacted Schultz through his nonprofit, the Schultz Family Foundation, via its website and email for comment.
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Why It Matters
Schultz said the decision was motivated by the appeal of Miami to him and his family—“the sunshine of South Florida”—rather than any recent legislative changes. However, the timing of the announcement, coming as the state moves closer to a proposed millionaire’s tax, has already raised questions about whether such policies can prompt affluent residents to depart and seek out more favorable tax jurisdictions.
And this issue of “capital flight” is now a topic of national debate as Democrats in certain cities and states weigh the introduction of new taxes on their wealthiest residents.
What To Know
Schultz served as the company’s CEO in three separate stints, the latest of which ended in 2023, and boasts a net worth of $3.5 billion according to the latest Forbes estimate.
And his departure from Washington comes as Starbucks makes several changes to its corporate footprint.
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The company plans to keep its headquarters in Seattle, but earlier this month announced that it will be opening a new corporate office in Nashville, Tennessee, later in the year, part of a wider effort to expand its presence in the Southeast.
Tennessee, like Florida, generally has a lower and more favorable tax regime for wealthy individuals—and in many cases corporations—than Washington.
And while Washington is one of several states that does not currently impose a personal income tax, the changes now being advanced would mean a 9.9 percent tax on annual income over $1 million.
Senate Bill 6346 would also direct some of the new revenue—around $3.5 billion annually per some projections—toward cutting other taxes and expanding the Working Families Tax Credit to about 460,000 additional households.
The measure passed in the state’s Democratic-controlled lower chamber by 51 to 46, after a 24-hour-plus floor debate.
The bill must now return to the Senate, also controlled by Democrats, for approval of the changes before being sent to Democratic Governor Bob Ferguson, who said on Tuesday, “I look forward to signing it.”
What People Are Saying
Schultz wrote in Tuesday’s post: “Like many other Seattle-based companies, Starbucks today stands on the shoulders of the many Pacific Northwesterners who built the company. They helped shape the culture, the benefits and the brand, contributing to the civic, community and public life of the city and state. It is our hope that Washington will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas.”
Washington Governor Bob Ferguson, via X: “The Millionaires’ Tax passed by the House represents historic progress in rebalancing our unfair system. It sends significant dollars back to Washington families and small businesses.”
What Happens Next
Once approved, the state’s new tax bill would take effect in early 2028.
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