Video Former Democratic Washington governor says party doesnt understand economics Former Democratic Washington Gov. Christine Gregoire criticized members of her own party for passing higher taxes and tax rates that scare small businesses.
Former Washington Gov. Christine Gregoire attacked her fellow Democrats in the Washington state legislature after the state's recent millionaires' tax.
While attending the Association of Washington Business 2026 Spring Summit on May 6, Gregoire, who served as Washington's governor from 2005 to 2013, was asked whether she believes the state legislature understands the impact of its economic policies.
"No, I really don't, as evidence by, you mentioned the estate tax," Gregoire said. "I argued with some folks about the estate tax. We were the highest in the country, tied with Hawaii at 20%. We went to 35%. We're not just the highest. We're beyond the highest."
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Washington Governor Christine Gregoire speaks at the "Love Wins: A Wedding Reception For All" event at the Paramount Theatre in Seattle, Washington on December 9, 2012. (Cliff Despeaux/Reuters)
Though Washington's estate tax was raised to 35%, a recent bill passed in April has since rolled back the rate to 20% after backlash.
"And I said now, you understand the consequences of this?" she continued. "Can I see your fiscal note? Because I'd like to help it. Because here's what you can expect. Those people are not homeless. They will not pay. They’re leaving. When they leave, they stop paying capital gains. When they leave, they stop giving significantly to philanthropy, which would otherwise be necessary by government. So you understand, do you see the consequences of what you’re doing? And the answer is no."
Gregoire also called out Democratic state House members for a lack of business experience in understanding the impact taxes have on small businesses.
"I would suggest to you, we don't really have an income problem," she said. "We have a spending problem, and we're answering it by stacking one more tax, one more rule, one more regulation. And the one thing that the business community doesn't need is that lack of predictability. That's how businesses grow, that's how they thrive. That's not healthy for our business community at all."
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Fox News Digital reached out to the Washington state legislature and Democratic caucus for comment.
Pushed through by the Democratic majority during the 2026 session, the millionaires' tax imposes a 9.9% tax on annual income exceeding $1 million for individuals or households. While the tax was signed in March 2026, it is not scheduled to take effect until Jan. 1, 2028, with the first payments due in 2029.
After the tax was passed, Starbucks, which originated in Seattle, announced that it would be moving 2,000 corporate jobs to a new regional headquarters in Nashville, Tennessee.
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Seattle Mayor Katie Wilson has come under fire for having a dismissive attitude towards millionaires leaving Washington. (David Ryder/Reuters)
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The tax also came as Seattle Mayor Katie Wilson, a self-described socialist, faced criticism for her dismissive attitude toward the idea of millionaires leaving the state.
Fox News' Joshua Nelson contributed to this report.
Lindsay Kornick is an associate editor for Fox News Digital. Story tips can be sent to lindsay.kornick@fox.com and on Twitter: @lmkornick.
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