DIVORCE FOR DOLLARS! WA Millionaire Tax Makes SPLITTING WAY Cheaper Than Marriage
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This episode of 'News For Reasonable People' examines Washington State's newly passed 9.9% income tax on earnings over $1 million, dubbed a 'millionaire's tax' but criticized for creating a severe marriage penalty. The host argues that for high-earning couples, getting divorced may become financially advantageous due to the tax's structure, which treats married couples as a single taxable unit rather than two individuals. This means a dual-income household earning $600,000 each could face a $99,000 tax bill if married—zero if single—making divorce a rational financial move despite emotional or social costs. The episode highlights how this policy, driven by Democratic supermajority leadership, could incentivize couples to split legally, even if they remain together, and warns of broader economic consequences including the exodus of tech giants like Amazon and Starbucks, and high-profile figures like Jeff Bezos and Howard Schultz who have already relocated to lower-tax states like Florida and Texas. The host frames this as a symptom of 'tax and spend' liberalism, leading to a 'doom loop' of business flight and economic decline in the state.
Married couples in Washington State earning over $1 million combined may pay significantly more in taxes than single individuals, creating a financial incentive to divorce.
The state’s 9.9% tax on income above $1 million applies to joint filers without doubling the threshold, resulting in the largest marriage penalty in the U.S.
High-earning dual-income couples may find that the tax savings from divorce exceed the cost of legal separation, making it a rational financial decision.
Tech leaders and billionaires like Jeff Bezos and Howard Schultz have already left Washington due to high taxes, signaling a broader trend of economic flight.
Washington’s combination of high income, gas, sales, and capital gains taxes is making the state increasingly uncompetitive for businesses and high earners.
The Marriage Penalty in Washington's New Millionaire Tax
“It is literally cheaper if you go through basically a no-fault divorce in the state of Washington. You don't get all worked up and go to trial like I did because that's just stupid because all you do is pay for the attorneys, right?”
Why Divorce Could Be a Smart Financial Move
“The tax savings alone would more than pay the costs of a divorce lawyer. Plus, you got a really good excuse.”
The Exodus of Tech and Billionaires
“He said, F you, Washington State. You suck. Going to Florida. All my other billionaire buddies.”
A Broader Crisis: The Washington Doom Loop
The host expands the critique to include Washington’s high gas prices, sales taxes, housing costs, and regulatory burden. He argues that the state’s economic model is unsustainable and risks becoming a 'doom loop' of business flight and population loss.
“He said, F you, Washington State. You suck. Going to Florida. All my other billionaire buddies.”
“The tax savings alone would more than pay the costs of a divorce lawyer. Plus, you got a really good excuse.”
“It is literally cheaper if you go through basically a no-fault divorce in the state of Washington.”
Host
Washington State
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9.9% income tax
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Senate Bill 6346
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California
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Florida
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Howard Schultz
person
Jeff Bezos
person
Starbucks
organization
Amazon
organization
New York
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