Florida's Governor Ron DeSantis recently emphasized the considerable financial repercussions experienced by Washington state due to Amazon founder Jeff Bezos's decision to relocate to Florida in late 2023. This move, DeSantis suggests, serves as a clear illustration of how states with favorable tax policies can attract wealthy individuals, subsequently impacting the fiscal stability of those left behind. The debate over state income taxes and their influence on economic migration continues to gain traction, with high-profile relocations bringing the issue into sharp focus.
Governor DeSantis articulated on a social media platform that Washington had, in his words, 'lost its most significant taxpayer' with Bezos's departure. While precise figures were not disclosed by DeSantis, reports indicate that Bezos's move to an exclusive community near Miami in 2024 potentially enabled him to avoid a substantial tax liability, estimated at around $1 billion. This amount is noteworthy when considering Washington state's annual revenue, which hovered around $66.39 billion between 2023 and 2025.
DeSantis further criticized Washington's proposed state income tax on its wealthiest residents, labeling it 'counterproductive.' He argued that such policies inadvertently grant states like Florida, which do not levy an income tax, a considerable advantage. According to the Governor, this creates an environment where 'taxpayers will flee' from jurisdictions with less attractive tax structures, leading to an erosion of the economic base. He cautioned that if unchecked, this cycle of spending and taxation could eventually extend beyond millionaires, burdening a broader segment of the population.
The trend observed with Bezos is not isolated. Other states, notably California, are contemplating similar wealth taxes. A proposed 2026 Billionaire Tax Act in California aims to impose a one-time 5% levy on residents with a net worth exceeding $1 billion. This proposal includes strict penalties for misrepresentation of wealth and measures to deter evasion. Figures such as billionaire investor Peter Thiel and Alphabet co-founder Larry Page are reportedly considering or have already initiated plans to reduce their ties with California, with Page reportedly planning a move to Florida. This indicates a growing concern among the ultra-rich regarding potential wealth taxes and their impact on their financial strategies.
The migration of affluent individuals and the implications of differing state tax policies are becoming increasingly central to discussions about state budgets and economic development. The decisions made by states regarding taxation can profoundly influence their ability to retain and attract high-net-worth residents, thereby affecting overall state revenue and the broader economic landscape.