Tax Statement: The State Of Washington Might Be Too Expensive For Jeff Bezos, Bill Gates, Steve Ballmer And McKenzie Scott To Live There Anymore.

Facing a $2 billion tax bill would be completely overwhelming, unless you had a personal net worth worth of $2 billion, than it would be more of a nuisance.  But just because Jeff Bezos could afford to pay that mountain of a wealth tax bill he potentially could face as a resident of the state of Washington, doesn’t mean he wants to cut that check.

Washington does not have a state income tax, so one way state lawmaker potentially plan on making up for that is by putting what is essentially a 1% wealth tax on anyone worth more than $1 billion. 

That, legislators say, will bring in an additional $2.5 billion in revenue each year, thanks to some extremely wealthy people that live in the Seattle are, specifically Jeff Bezos, Bill Gates, Steve Ballmer, and the ex-wife of Bezos Mackenzie Scott.

The three word phrase that’s sure to give that fabulous foursome night sweats is House Bill 1406, and one of the masterminds of it is Democratic Representative Noel Frame, the chair of the state’s House Finance Committee. 

According to Frame, she told GeekWire that Washington’s tax code is the most regressive in the nation, and one of nine states without a state income tax.  “We have a tax code that asks low-income people to pay six times more than the wealthiest, in terms of how much tax they’re paying as a share of their income,” she told GeekWire. “As a state that considers ourselves a social and economic leader, I just don’t think it’s acceptable. It’s completely out of line with our values.”

There are tax experts that say it wouldn’t be fair for those mega-billionaires to foot that much of the load.  The Tax Foundation’s Jared Walczak did the math, and he told Business Insider that those four aforementioned uber wealthy individuals would account for 97% of that tax.  On top of the $2 billion Bezos would ow, Gates is looking at a $1.3 billion tax bill, Ballmer would pay $870 million, and Scott would be looking at a $600 million tax hit.

That stings, no matter how much you are worth, especially when you consider they are only paying it because they live in Washington. Warren Buffett doesn’t face the same cash call from his state of Nebraska.

What’s the solution? Since those four don’t have day jobs running their companies any more, they could move to another state. Walczak said legally, they could move to another state and set up primary residence there, and still be able to spend up to 182 days a year in Washington, and they wouldn’t have to pay the tax.

Fun fact:  The Washington Department of Revenue estimates there are almost 100 billionaires in the state of Washington. 

For bright minds smart enough to figure out how to accumulate such staggering fortunes, I’m guessing they will find ways to avoid having to pay a hefty wealth tax.