A former Microsoft executive has condemned Washington's tax policies as he prepares to relocate his new venture to Idaho. Entrepreneur Ben Rudolph, 50, announced this week that he is leaving the Democrat-led state where he built his career due to exorbitant taxes, moving his startup Cartografiq elsewhere.
Rudolph stated he wanted to escape Washington's 'hostile' attitude toward business and chose Idaho for its more favorable tax codes. 'The biggest thing for us is the gross receipts, the B&O tax, which in Washington state is tax on gross receipts - all of your revenues brought in - whereas in Idaho, it’s taxed on net profit,' he told The Jason Rantz Show. He added that Idaho's tax policies, implemented by Republicans, would be 'a huge thing for us.'
Rudolph also pointed to new laws affecting his business type. 'They’re written very poorly, and they’re written in a very kind of murky opaque way, where it’s really difficult to understand what you actually have to charge tax on, then of course you’re charging your customers more, because now you have to apply sales tax to something, in some cases, which are certainly non-trivial investments. And that impacts budgets, and that impacts our ability to do work.'
This comes as Seattle's socialist Mayor Katie Wilson faces criticism for her anti-business approach, including a controversial remark where she waved and laughed 'bye' when asked about corporations fleeing the city. Since taking office in January, Wilson has introduced a Business and Occupation (B&O) tax hike alongside a Families, Education, Preschool, and Promise Levy, raising taxes on businesses and properties to fill a $488 million budget deficit.
Far-left tax policies have sparked widespread concern among Washington businesses. A survey earlier this year from the Association of Washington Business found that 24 percent of the state's employers are considering leaving. Rudolph did not cite Wilson by name but said tax policies in Washington have spiraled out of control and directly impacted his consumers.
'All these things together make it harder for us to acquire work and generate revenue off that work, and then we are penalized. With this kind of gross fee and overseas tax, that makes it more difficult for us to generate profit, which means I can’t hire as many people. I can’t spend as much on goods and services, and it just kind of depresses the entire economic value of the business system and climate in which we’ve been forced to operate,' he said.
Rudolph, who left Microsoft in 2023 to launch his own venture, said he has had enough of politicians' anti-business approach in Washington. Last month, Wilson sparked controversy when she was asked about the impact her high-tax, far-left economic policies could have on Seattle's tax base, saying she thought fears that millionaires would flee are 'overblown.' 'And to the ones that leave? Like, bye,' she added with a wave.
Rudolph is not alone in his criticisms. Starbucks founder Howard Schultz recently shared an op-ed in the Washington Post accusing Wilson of 'fracturing' Seattle's long history of entrepreneurship. Starbucks announced plans earlier this year to move much of its business base to Tennessee due to more favorable tax codes. Rudolph said this is just one example of Washington state's declining business culture.
'Look at all the amazing companies that were founded in Washington - Microsoft, Amazon, Boeing, Starbucks. Who’s going to be able to start the next Microsoft or the next Amazon or the next Boeing or the next Starbucks in Washington state versus somewhere else, if the climate is set up where their growth and their success is not being championed by the state but is being penalized?' he asked.
