In a recent statement, Florida Governor Ron DeSantis pointed to the significant effects on Washington state’s budget following Amazon founder Jeff Bezos’ decision to move residence to Florida in late 2023. Addressing the issue publicly via a social media post, DeSantis remarked that Washington had effectively lost its most substantial taxpayer, linking this migration directly to a major fiscal impact on the state.
Although DeSantis did not provide detailed monetary figures, public reports have indicated that Bezos’ relocation to his residence in Indian Creek Village, near Miami, could save him approximately $1 billion in tax liabilities. This amount is particularly significant when contrasted against Washington state’s own annual revenue, which is estimated at around $66.39 billion across the 2023 to 2025 period.
This financial shift unfolds amid Washington’s contemplation of implementing a state income tax targeting millionaire residents. Governor DeSantis characterized such tax policy initiatives as "counterproductive," explaining that the existence of states like Florida, which do not levy an income tax, confers a "major advantage" over states that impose such taxes.
DeSantis elaborated on the broader economic implications, asserting that Washington’s policies have already precipitated an exodus of taxpayers attributed to unfavorable regulatory environments. He cautioned that such patterns are likely to persist, observing, "taxpayers will flee" from states perceived as taxing residents excessively.
The governor further warned that persistent government spending coupled with the imposition of taxes initially aimed at the wealthiest will predictably expand to include the wider tax base. According to DeSantis, this cycle risks progressively undermining the states’ economic foundations, with repeated patterns of tax hikes and taxpayer departures reinforcing each other.
Requests for comments from both Jeff Bezos and Washington state officials were unreturned at the time of reporting. Updates will be provided when additional information becomes available.
The fiscal dynamics observed in Washington are paralleled in other states as well, including California, which has recently introduced a proposal termed the 2026 Billionaire Tax Act. This legislation would institute a one-time 5% levy on the net worth of all residents whose fortune exceeds $1 billion. Provisions within the act include strict penalties for underreporting wealth and mechanisms to prevent tax avoidance among California’s estimated 200 billionaires.
Amid this evolving fiscal landscape, notable billionaires such as investor Peter Thiel and Alphabet Inc. co-founder Larry Page have indicated intentions to reduce their residency ties to California, with Page reportedly planning relocation to Florida. These movements underscore a broader trend among high-net-worth individuals seeking more favorable tax environments.
Overall, the interplay between state tax policies, billionaire relocations, and fiscal sustainability presents a complex challenge ahead for states balancing revenue requirements against resident retention.