Starbucks founder Howard Schultz has launched a blistering attack on Seattle Mayor Katie Wilson, accusing her of driving businesses out of the city and destroying its long history of entrepreneurship. In a scathing op-ed published in the Wall Street Journal, Schultz explained why he has relocated much of Starbucks' corporate operations to Tennessee, placing the blame squarely on Wilson for what he described as 'fracturing' Seattle's business culture.
Schultz Condemns Mayor's Hostility to Business
Schultz, who opened the first Starbucks store in Seattle's Pike Place Market in 1971, condemned the mayor's open hostility toward businesses, despite the city being home to corporate giants such as Starbucks, Amazon, and Microsoft. He argued that Wilson's policies would drive away jobs created by innovation. 'Wilson has chosen to cast business as a foil rather than a partner,' Schultz wrote. 'Her socialist rhetoric vilifies employers, even while she continues to rely on them for revenue. She has encouraged residents who disagree with her policies to leave.'
This line appeared to reference Wilson's recent dismissive comment about millionaires leaving the city after she implemented a new wealth tax. At a town hall, Wilson said she believed concerns about the tax driving away residents were 'overblown' and added, 'And to the ones that leave, bye!' as she waved her hand. The remark drew widespread backlash from those who fear her far-left policies will shrink Seattle's tax base and drive away businesses.
Wealth Tax and Business Exodus
Schultz, a billionaire who would have been affected by Wilson's wealth tax, criticized the mayor's understanding of how businesses thrive. He recently moved to Florida and used his op-ed to lament the decline of public education and safety in Seattle under progressive policies. 'The theory appears to be that prosperity can be mandated through redistribution rather than generated through growth,' he wrote. 'Washington has a broken tax system.'
In March, Washington introduced a millionaire's tax of 9.9 percent on all earnings over $1 million, set to take effect in 2028. Wilson was a staunch supporter of the measure, despite several major companies already leaving the state. Starbucks is building a new corporate hub in Tennessee and moving thousands of jobs out of Washington, while Amazon founder Jeff Bezos relocated his fortune to Florida to take advantage of lower taxes. Fisher Investments, a money management firm with over 6,000 employees, also moved out of Washington in 2024 after the state introduced a new capital gains tax.
Seattle's Decline as a Business Hub
Schultz wrote that he is not surprised by the exodus from the Northwest due to high tax rates, but expressed sadness at Seattle losing its status as a hub for business and innovation. 'These companies imported global talent at scale for decades, anchoring an interconnected system of suppliers and startups,' he wrote. 'As those businesses reduce their local role, Seattle has no clear answer to the question of what will provide the next set of jobs and revenue growth.'
He warned that the effects of Wilson's far-left policies would not be immediate but would lead to a gradual decline. 'Cities and states don't decline overnight,' he cautioned. 'They drift when public safety, fiscal stability and economic vitality deteriorate together. Downtown vacancies reduce foot traffic. Declining foot traffic weakens small businesses. Employment falls. Revenue shrinks. Services erode. Confidence—something that's hard to build and easy to lose—begins to evaporate.'
Schultz contrasted Washington's trajectory with other states that are competing for capital and talent by simplifying regulation, reforming tax systems, and investing in workforce development. 'Washington once embodied the future of the U.S. economy, and it can again,' he said. 'But the current government needs to learn that future entrepreneurs won't be attracted by ineffective public systems, especially when joined with policy and political rhetoric that demonize businesses.'
Wilson, 43, was inaugurated earlier this year and faced criticism after it emerged that her parents still pay for her childcare. The Daily Mail has contacted Wilson for comment.
