WOKE Employees DEVASTATED As Starbucks SHUTS DOWN & FLEES Seattle Amid INSANE Democrat Income Tax!
Quick Read
Summary
Takeaways
- ❖Washington state passed a 9.9% income tax on individual income above $1 million, effective January 1, 2028, after a 24-hour House debate.
- ❖The host argues this 'millionaire's tax' is unconstitutional in Washington and will face a significant legal challenge.
- ❖Starbucks founder Howard Schultz relocated to Florida the same day the tax passed, a move the host attributes directly to the new tax.
- ❖Starbucks is relocating some corporate jobs from Seattle to Nashville, Tennessee, and closing five Seattle stores, which the host links to the state's economic policies and union demands.
- ❖The host contends that 'tax the rich' policies inevitably lead to the wealthy leaving, forcing states to tax regular citizens to fund promised 'free' programs.
- ❖Red states like Florida and Tennessee are attracting businesses and high-income individuals due to lower taxes and cost of living.
Insights
1Washington State Enacts Millionaire's Tax
Washington House lawmakers advanced a 9.9% income tax on individual taxable income above $1 million, effective January 1, 2028, following a 24-hour debate. Republicans argued it would scare businesses out of the state and is unconstitutional, while Democrats stated it would fund critical services and help low-income families.
House lawmakers voted to advance the proposed millionaires tax... The final vote came down to a 51-46 majority... an income tax which apparently is unconstitutional in Washington... 9.9% tax on the individual's Washington taxable income above $1 million... this begins on January 1st, 2028.
2Starbucks Founder Howard Schultz Relocates to Florida
Starbucks founder Howard Schultz announced his relocation from Seattle to Miami, Florida, the same day Washington state lawmakers approved the new high-income tax. The host interprets this move, along with Jeff Bezos's prior departure, as a direct response to the state's tax policies, despite Schultz framing it as a personal retirement decision.
Starbucks founder Howard Schultz announced he and his family are leaving Seattle and relocating to Florida the same day Washington state lawmakers approved a new tax on high-income earners... We have moved to Miami for our next adventure together.
3Starbucks Shifts Corporate Operations to Tennessee
Starbucks is relocating some corporate jobs from Seattle to Nashville, Tennessee, to establish a stronger presence in the Southeast. The host views this as part of a broader trend of businesses moving to red states with lower taxes and costs, while a Seattle economics professor frames it as inevitable expansion.
Starbucks is relocating some of its corporate jobs from Seattle and expanding operations to Tennessee... COO Mike Grahams says they do have ambitions to establish a better presence in the southeast region of the United States.
4Starbucks Closes Multiple Seattle Stores
Starbucks confirmed the closure of five Seattle locations, including four unionized shops, citing factors like customer experience and financial performance. The host asserts these closures are a direct result of union demands for higher wages and benefits, making operations unprofitable, despite Starbucks' official statements.
Starbucks is planning to close more stores here in Seattle. Five stores will shut down in the coming weeks... Four of those stores are unionized shops... The company is always evaluating its portfolio of stores, adding, 'Sometimes that means investing in updates or trying new formats. Other times it means making the difficult decision to close a location that no longer fits how people in that community live, work, or gather.'
5"Tax the Rich" Policies Lead to Broader Taxation
The host argues that policies initially targeting millionaires for taxation are unsustainable because the wealthy leave. This forces governments to eventually expand income taxes to middle and lower-income citizens to fund previously promised 'free' social programs, as they refuse to cut spending.
It always starts off with, 'Hey, we're just going to tax the millionaires and the billionaires.' The millionaires and the billionaires leave because they can... then what ends up happening is that regular normal everyday people who are not millionaires, they get stuck holding the bag, right? footing the bill either via more taxation.
Bottom Line
The host claims 'woke employees' and union demands for high wages ($25/hour minimum) and free healthcare directly contribute to Starbucks stores becoming unprofitable and subsequently closing in Seattle.
This perspective suggests that aggressive labor demands, combined with high state taxes, create an unviable business environment, leading to job losses and corporate flight, which impacts the very communities these policies aim to help.
Businesses looking to expand or relocate can analyze the combined impact of local labor movements and state tax policies on operational profitability, favoring regions with more stable and predictable cost structures.
The host interprets corporate communications about store closures and relocations (e.g., 'no longer fits how people in that community live, work, or gather') as 'corporate speaking' to avoid directly blaming tax policies or union demands.
This highlights a perceived disconnect between public corporate messaging and underlying economic realities, suggesting companies often use euphemisms to navigate politically sensitive issues.
Analysts and investors should look beyond official corporate statements to understand the full range of factors influencing major business decisions, especially in politically charged environments.
Lessons
- Evaluate the long-term economic sustainability of 'tax the rich' policies, considering the potential for capital flight and the eventual expansion of taxation to broader populations.
- When assessing business environments, consider the combined impact of state-level tax policies, cost of living, and labor market dynamics (e.g., union demands) on operational profitability.
- Recognize that public statements from corporations regarding relocations or closures may not fully disclose all contributing factors, especially those with political implications.
- For individuals and businesses, research and consider states with favorable tax environments and lower costs of living (e.g., in the Southeast or Midwest) when making relocation or expansion decisions.
Notable Moments
Washington House lawmakers engaged in a marathon debate lasting almost 25 hours, the longest in state history, over the millionaire's tax bill, with members sleeping on the floor and relying on caffeine.
This illustrates the intense political division and the significant effort involved in passing controversial tax legislation, highlighting the deep ideological chasm between parties on economic policy.
The host sarcastically refers to a Seattle economics professor's explanation for Starbucks' move to Nashville as 'cope,' implying the professor is unwilling to state the obvious economic reasons (lower taxes, cost of living) due to political correctness.
This highlights the host's critical view of academic or mainstream media explanations that avoid directly linking corporate decisions to progressive policies, framing it as a deliberate omission.
Quotes
"If they do, then they will stay. If they do not, then they will not. They will vote with their feet for what their values are."
"The reality is Washington does not have a revenue problem. The majority party has a spending problem."
"There is no such thing as a free lunch. There is no such thing as free. Okay? That's what people got to understand. Any of these politicians telling you something is free, they're scamming you."
"We can't make money off y'all, right? We can't make money with y'all. We can't make money with you. We're unprofitable. Sorry. That's why we got to close."
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