A proclamation to the people of Washington state

Following the adoption of a new 9.9 percent state income tax, the Mountain States Policy Center today released a proclamation warning that Washington’s new income tax could undermine the state’s economic competitiveness and drive investment and job creation to neighboring states.

Supporters of the policy have labeled it a “millionaires tax,” but the measure represents a historic shift in Washington’s tax structure and could open the door to a broader income tax in the future.

“For decades, Washington distinguished itself as a place where entrepreneurs and innovators could build businesses without a state income tax,” the proclamation states. “This new policy sends a very different message.”

The proclamation notes that while Washington moves toward adopting an income tax, nearby states are moving in the opposite direction. Idaho recently lowered its income tax to a flat 5.3 percent, Montana leaders have pledged to reduce their rate to a 4.7 percent flat tax, and Wyoming continues to operate without a state income tax.

Economic research has long shown that tax policy can influence migration patterns, particularly among entrepreneurs and investors who have the flexibility to relocate. When businesses and investment capital move, the proclamation warns, the economic effects can extend far beyond individual taxpayers.

“States across the Mountain West are actively competing to attract investment, talent, and opportunity,” the proclamation concludes. “Washington must decide whether it intends to compete for that future or watch as it gradually moves elsewhere.”

Proclamation to the people of Washington state

When in the course of time it becomes evident that those entrusted with power no longer heed the will of the people, citizens are compelled to consider what remedies remain in their hands.

For generations, the people of Washington have spoken plainly on the question of a state income tax. Eleven times voters have rejected it. Most recently, more than 100,000 citizens signed in opposition when the proposal was heard in Olympia. Their message was unmistakable. Yet their elected leaders ignored them.

In defiance of this long and consistent public judgment, lawmakers have now imposed a new, unconstitutional state income tax of 9.9%. Though the burden today may fall upon those earning over a million dollars, nothing in the law ensures that it will remain so tomorrow. Such is the familiar path of government expansion.

History offers many warnings. In states such as California, New York, and Illinois, heavy tax burdens placed upon entrepreneurs and investors have been followed by a steady migration of talent, capital, and opportunity to more welcoming states. Businesses relocate. Investment shifts. Jobs follow.

An entrepreneur today may build a company in Boise as easily as Seattle. A startup may flourish in Bozeman. An investor may manage a portfolio from Jackson. Technology has liberated economic opportunity from geography, and the states now compete openly for those willing to build and create.

We understand this well.

Idaho has lowered its income tax to a flat 5.3%. Montana is working toward a flat tax of 4.7%. Wyoming continues to operate with no state income tax at all.

We are not punishing success; we are inviting it.

Washington’s leaders, by contrast, have chosen another course. They have disregarded the clear and repeated will of their citizens. They have imposed a policy voters rejected time and again. And in doing so, they have placed the state at a growing disadvantage in the competition for talent, capital, and enterprise.

The consequences may not appear overnight. But they will appear.

And so, the people of Washington must now consider a question once familiar to Americans: what recourse remains when government refuses to listen?

A legal fight is inevitable. But in this country, citizens also retain one additional quiet but powerful form of protest. They may choose to leave. To move their businesses. To move their investments. To move their families and their futures.

For those who build companies, create jobs, and invest in opportunity, the decision of where to live and work has never been more flexible. And today, just across Washington’s borders, other states are making their intentions clear.

Idaho welcomes entrepreneurs. Montana welcomes investment. Wyoming welcomes prosperity.

We do not punish success. We invite it.

The time has now arrived for Washingtonians to ask whether their own state still does. And if the answer is no, the road east is wide open.

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