Howard Schultz, who sold ‘public trust,’ torches Seattle, Washington state on his way out
SEATTLE — Former Starbucks CEO and Chairman Howard Schultz, who once sold the NBA’s Seattle Sonics to an out-of-town ownership group and has scarcely been seen in the city since, is moving to Florida and torching state and local leaders as he packs up his moving van.
In a sharply worded new Wall Street Journal opinion piece, Schultz argues the region has become increasingly hostile to the businesses that helped fuel its economic rise.
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In the essay titled “Seattle Turns Hostile to the Great Businesses It Made,” Schultz warned that Seattle risks economic decline if leaders continue pursuing what he described as anti-business policies centered on higher taxes and rhetoric that “demonize businesses.”
“Seattle’s mayor, Katie Wilson, has chosen to cast business as a foil rather than a partner,” Schultz wrote. “Her socialist rhetoric vilifies employers, even while she continues to rely on them for revenue.”
Schultz said Washington’s economy was built over decades by companies including Microsoft, Amazon, Costco and Starbucks, arguing that civic leaders once understood “private enterprise wasn’t the adversary of the public good.”
But Schultz said that the relationship has deteriorated amid rising concerns over homelessness, public safety, downtown vacancies and state budget pressures.
“Cities and states don’t decline overnight,” Schultz wrote. “They drift when public safety, fiscal stability and economic vitality deteriorate together.”
The opinion piece also highlighted Starbucks’ recent announcement that it plans to shift hundreds of corporate jobs to Tennessee, alongside broader hiring slowdowns at major tech employers.
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The response from Seattle business leaders on Tuesday appeared to reinforce some of Schultz’s broader concerns about confidence in the city’s direction.
At a quarterly briefing, the Seattle Metropolitan Chamber of Commerce released new polling showing the city’s quality-of-life rating dropped from 4.81 to 4.54, its lowest point in two years after a period of improvement.
The Chamber’s “Index” survey also found economic anxiety is rising, with concerns about a potential recession, and public safety remains a top concern affecting quality of life, followed by homelessness. The polls also suggested respondents believe the city should focus on better results with existing resources instead of raising new taxes.
Seattle Chamber CEO Joe Nguyen acknowledged he’d received Schultz’s piece from no less than 12 people, and he empathizes and understands the frustration. But Nguyen also said he’s optimistic, as are other remaining civic leaders and referencing Schultz, said: “This is a conversation that Seattle should have and needs to have.”
Wilson has not formally introduced a tax proposal, but seemed to be the biggest target of Schultz’s scorn.
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She pushed back on Schultz’s characterization of the city’s relationship with major employers.
“Starbucks is part of Seattle’s culture and identity, and I want the company and other large employers to continue succeeding here,” Wilson said in a statement to KOMO News. “My team and I are in regular communication with the executive team at Starbucks on shared priorities like addressing homelessness, public safety, and affordability.”
Wilson said Starbucks and other business leaders have partnered with the city on expanding shelter capacity and said Seattle’s identity is rooted in collaboration between workers and employers.
“Seattle is a special place because of our history, our culture, our workforce, and a shared understanding that companies and workers can succeed together,” Wilson said. “There is plenty of room for us all to find common ground and work together on our city’s biggest challenges.”
Just last week, Wilson also praised the company, along with Amazon, T-Mobile and Microsoft, for donating money for tiny home villages and affordable housing complexes.
Schultz has never held elected office and his voting record came under scrutiny during his aborted 2019 run for President. He was seldom seen around Seattle after selling the Seattle Supersonics franchise to the Oklahoma City group headed by Clay Bennett in 2006, after failing to get public tax money for a new sports arena, in what is likely Schultz’s biggest individual business failure.
Schultz acknowledged Washington’s tax structure needs reform, calling the state’s reliance on sales taxes “deeply regressive.” But he argued lawmakers have focused too heavily on increasing taxes rather than improving government performance and accountability.
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“Government, too, should be judged by results, not intentions,” Schultz wrote.
Schultz had previously said he would move to Florida after Washington approved the Millionaires Income Tax on high earners, like him. Florida has no state income tax.
Schultz, whose family foundation remains active in Washington state, said he still believes Seattle can recover its economic momentum if leaders pursue “job creation, sensible taxation and accountable public spending.”
