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A prominent Washington businessman is joining a growing exodus of business leaders fleeing the Evergreen State, citing a “dramatic” change in the state’s tax landscape following the passage of a controversial new “millionaires’ tax.”
Jesse Proudman, founder and CTO of privacy-focused AI platform Venice.ai, told Fox News Digital on Tuesday that the country he once called “the first place” is becoming increasingly hostile to the people fueling its economy.
“I started three companies here in the state. I’ve been an entrepreneur my whole life here,” said Proudman. “The business climate when I started my first company was very business-friendly, and the startup community was considered a contributing member of the city. Over the years, that has changed a lot.”
Proudman, who founded private cloud firm Blue Box and crypto-investing platform Makara, now serves as a spokesperson for Let’s Go Washington. The political committee is currently leading a major effort to gather signatures to end the tax measure before it takes effect.
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Washington business owner, Jessie Proudman, is fleeing the country because of taxes and unfriendly business policy.
The tax, pushed through the Democratic-controlled legislature during the 2026 session and signed into law by Gov. Bob Ferguson in March, imposes a 9.9% tax on annual income over $1 million. Although it will start working on Jan. 1, 2028—with the first payments due in 2029—the mere threat of its implementation is already shifting state demographics.
“We have until July 2nd to collect about 325,000 signatures to put this on the November ballot,” said Hallie Herzberg, Communications Director for Let’s Go Washington. “People deserve the right to vote on this. It has already driven businesses, employers and families out of government.”
The move marks a major change for Washington, which has historically been one of the few states with no personal income tax. However, the legal basis changed in 2023 when the state Supreme Court proposed a 7% capital gains tax, effectively opening the door to a broader income-based tax that critics say violates the state constitution’s requirement that property (which includes income) be taxed at the same rate.
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Seattle District Attorney, Sen. Jamie Pedersen, behind Washington’s newly enacted “millionaires tax” dismisses concerns that higher income tax increases will cause an exodus of wealthy residents and businesses from the Pacific Northwest. (Washington Senate Democrats)
State Sen. Jamie Pedersen (D-Seattle), the Senate Majority Leader and the bill’s primary sponsor, dismissed concerns about “tax flight.”
“The reality is that a millionaire’s tax is not going to cause businesses to leave,” Pedersen told the local FOX network following the bill’s signing. He later told Fox News Digital that there is “no evidence” that high earners will move to low-tax states like Florida or Texas.
Data from the Association of Washington Business (AWB) suggests otherwise. A recent survey reported by Center Square they found that 44% of business leaders in the province are considering moving their residences to another place. In addition, Washington businesses reported that they now have twice the ability to expand outside the state than within it.
For Proudman, the decision has already been made. He plans to relocate his life and business interests to Austin, Texas.
“It’s not a friendly place to do business anymore,” Proudman said. “Start-up companies are treated badly. With the passage of this tax, we’re looking at other places to move, and maybe we’ll end up in Austin.”
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Washington State’s new tax bill is facing legal challenges, as some say it violates the state Constitution. (Joe Sohm/Visions of America/Universal Images Group via Getty Images)
Proudman warned that while the tax is currently being called a “millionaire’s tax” for the public good, the long-term economic consequences will eventually hit middle-class citizens as the tax base shrinks.
“They target a very mobile population,” argued Proudman. “When those people leave, this will be a tax on everyone. The voters are inadvertently creating a ridiculously bad tax situation for themselves. Washington is the 45th worst tax state. This is an unconstitutional tax that will eventually work on everyone.”
The office of Sen. Pedersen did not respond to Fox News Digital’s latest request for comment.
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