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Wealthy Washington state residents are eyeing Nevada as a tax-friendly refuge, with Las Vegas becoming a prime destination for high-net-worth individuals looking to escape increasing state taxes. A new Bloomberg report highlights an exodus of millionaires, particularly from the tech sector, as Washington lawmakers push new tax measures.
Following the 2021 introduction of a 7% capital gains tax, Washington’s Senate Democrats have proposed two additional taxes:
- A 5% payroll tax on large employers, similar to Seattle’s JumpStart tax, targeting companies with over $7 million in payroll expenses. Expected to raise $2.3 billion annually, funds would go toward public education and healthcare.
- A financial intangibles tax, imposing a $10 fee per $1,000 of assessed value on stocks, bonds, ETFs, and mutual funds held by individuals with over $50 million in assets. This would affect approximately 4,300 taxpayers and generate $4 billion per year.
Microsoft President Brad Smith has warned that the tax proposals could inflict “lasting damage” on Washington’s tech sector, increasing costs for consumers and reducing jobs.
Meanwhile, Las Vegas realtors report rising interest from wealthy former Washington residents, many of whom built fortunes at companies like Microsoft and Amazon. Nevada, which has no state income tax, no capital gains tax, and no estate tax, is emerging as a preferred alternative.
Jeff Saling, head of Nevada’s StartUpNV accelerator, sees Washington’s tax policies as an opportunity for Nevada’s economy. “Seeing someone shoot themselves in the foot like that makes me cry a little bit,” he told Bloomberg, “but it’s a hell of an opportunity for us.”
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