Howard Schultz, the billionaire former chief executive of Starbucks, announced that he and his wife have moved from their longtime home in Seattle, Washington, where they lived for 40 years, to Miami, Florida.
This comes after lawmakers in Washington approved legislation to impose a new income tax on high earners.
Schultz said in a post on LinkedIn that he and his wife Sheri have entered “the retirement phase” of their lives and are looking forward to “our next adventure together” in South Florida. The family will be closer to their adult children who live on the East Coast, he wrote.
In his announcement, Schultz said he and his wife had travelled to many places around the world that they were unable to visit while building Starbucks and raising their family.
He said they chose Miami as their new home as they begin this chapter after spending decades in the Pacific Northwest.
Even though Schultz did not say he moved due to state tax changes, the timing has raised eyebrows.
9.9% tax for people earning more than $1 million per year
Washington’s Democratic‑controlled House of Representatives recently passed a bill that would impose a 9.9 percent income tax on individuals earning more than $1 million per year. That proposed tax is now being considered by the state Senate.
Florida does not have a state income tax. This policy has financially attracted many wealthy individuals and business leaders compared with states that impose higher taxes on high incomes.
Schultz helped build Starbucks into a global coffee brand over several decades. He is worth billions of dollars. He and his wife have purchased a luxury penthouse in the Miami area for $44 million. The residence is about 5,500-square-foot, reports the Wall Street Journal.
Moreover, Starbucks Corporation will continue its global operations and keep its main corporate headquarters in Seattle.
The new Washington tax aims to generate revenue for public services and expand tax credits for working families. Meanwhile, it could also drive wealthy individuals and businesses out of the state.
