Howard Schultz to leave Seattle as business community bristles over income tax

March 12, 2026 - 09:40

The impending departure of former Starbucks CEO Howard Schultz from Seattle has become a focal point for growing discontent within the city's business community, largely centered on the recently enacted high-earner income tax. While Schultz has not publicly cited the tax as his reason for leaving, his exit is widely interpreted as a symbolic blow and a reflection of broader frustrations.

The city's "JumpStart Seattle" tax, which imposes a levy on high salaries at large companies, was designed to fund affordable housing and community development. However, many business leaders argue it creates a hostile environment for top talent and corporate headquarters, potentially stifling economic growth. They contend the tax punishes success and may drive other influential figures and companies to follow Schultz out of the city.

Proponents of the tax maintain it is a necessary step toward addressing Seattle's severe affordability crisis and inequality, noting that large corporations have benefited greatly from the city's infrastructure and workforce. The debate underscores a fundamental clash over Seattle's future identity—as a hub for progressive policy or a traditional cradle for corporate innovation.

Even on the dreariest of days, Bob Donegan radiates optimism. The local business advocate acknowledges the challenges but believes in Seattle's resilient spirit and capacity for dialogue, hoping a compromise can be found that supports both community needs and a vibrant business climate.