New tax ideas will hurt Washington State innovation

Feb 11, 2021
Written by wpengine

A CEO who recently moved his company from San Francisco to Seattle warned that the state should not follow California’s anti-business tax policies that will discourage businesses from moving here.

During a technology forum in Seattle, Orion Hindawi, CEO of the cybersecurity company Tanium took aim at two of Washington Governor Jay Inslee’s new tax ideas: a capital gains tax and a tax on wealthy residents.

“The governor needs to understand that every time he says ‘capital gains tax’ he loses ten companies,” Hindawi said. “When he wakes up and says it into his pillow, five companies don’t move. This is becoming a huge PR issue for Washington state.”

Hindawi went on to say that Washington, one of nine states that does not charge an income tax, has a strong business recruiting tool in not charging tax on income. The lack of an income tax allows Washington to compete for companies with Austin, Denver and Nashville, Hindawi said.

“People can argue that it’s right or it’s wrong, but it’s somewhat irrelevant,” Hindawi said. “The question is actually do you want these people moving to your state or not?”

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