Seattle’s socialist-led government is facing a growing economic threat as employers and wealthy residents look beyond Washington State. Starbucks is building a major new corporate operation in Nashville and transferring selected teams from its longtime Seattle base. Meanwhile, nearly one in four Washington employers surveyed said they were considering moving their businesses out of the state.
Seattle is a sanctuary city led by Democratic socialist Mayor Katie Wilson, who took office in January after defeating incumbent Mayor Bruce Harrell. Wilson campaigned on stronger labor protections, expanded government programs, renter protections, and higher taxes on wealthy residents and businesses. Her relationship with the city’s business community has quickly become one of the major problems facing her administration.
The pressure extends beyond Seattle City Hall. Washington’s Democratic-controlled government has approved new taxes as employers report growing concerns about the cost of operating in the state. Business groups now warn that companies are moving beyond general frustration and beginning to explore specific relocation plans.
Wilson drew criticism in April when she dismissed warnings that wealthy residents could leave over the state’s tax policies. During an April 14th event at Seattle University, Wilson said, “I think the claims that millionaires are going to leave our state are, like, super overblown.” She then waved and added, “And if—the ones that leave, like, bye,” as members of the audience laughed and applauded.
The business data presents a less cheerful picture. A spring survey from the Association of Washington Business found that 24% of responding employers were considering moving their businesses out of Washington, up from 17% during the previous quarter and roughly three times the share recorded in winter 2025. Another 55% were considering moving their residences, while 72% identified the state’s tax burden as a leading concern.
The survey included 407 business owners and operators who responded between April 8th and April 22nd. Among those considering a business move, 35% were beginning to explore their options, 28% were actively searching for possible locations, and 18% were developing relocation plans. Six percent said they had already moved part of their operations, while another 3% said a relocation was underway.
Starbucks then provided one of the clearest signs that Seattle could lose future corporate growth. The company announced a $100 million investment in a Nashville support office expected to house 2,000 jobs over five years. Starbucks said those positions would include newly created jobs, work previously handled by contractors, and selected teams moved from Seattle, including sourcing and technology personnel.
"*" indicates required fields
The company said Nashville offered closer access to suppliers, a growing technology workforce, and proximity to regions where Starbucks expects to open more stores. Its new office will eventually occupy an entire building at Nashville’s Peabody Union complex. Starbucks said Seattle would remain its global and North American headquarters, but the company’s largest announced corporate-job expansion is going to Tennessee.
Wilson’s past treatment of Starbucks made the announcement especially awkward. Shortly after winning the mayoral election, she joined striking workers outside the company’s former Reserve Roastery and urged supporters to boycott one of Seattle’s most recognizable businesses. As KUOW reported, Wilson told the crowd, “I am not buying Starbucks and you should not either.”
Wilson has since tried to soften her position. According to Fox Business, she acknowledged that her boycott comments “caused more harm than good” and said of Starbucks, “I want them here, and I believe they want to be here.” Seattle City Councilmember Rob Saka offered a more worried assessment in a public statement: “I am gravely concerned. This is real.”