A prominent Washington tech entrepreneur is joining the growing exodus of business leaders fleeing the Evergreen State, citing a “dramatic” shift in the state’s tax climate following the passage of a controversial new “millionaire tax.”

Jesse Proudman, the founder and CTO of the privacy-focused generative AI platform Venice.ai, told Fox News Digital on Tuesday that the state he once called a “startup sanctuary” has become increasingly hostile to the very people who fuel its economy.

“I started three companies here in the state. I have been an entrepreneur my whole life here,” Proudman said. “The business climate when I started my first company was very entrepreneurial-friendly, and the startup community was looked upon as a contributing member of the city. Over the last number of years, that has changed dramatically.”

Proudman, who previously founded the private cloud company Blue Box and the crypto-investing platform Makara, is now serving as a spokesperson for Let’s Go Washington. The political committee is currently spearheading a massive signature-gathering effort to repeal the tax measure before it can take root.

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A Washington business owner, Jessie Proudman, is fleeing the state over its taxes and non-friendly business policy.

The tax, pushed through by the Democratic-controlled legislature during the 2026 session and signed into law by Gov. Bob Ferguson in March, imposes a 9.9% levy on annual income exceeding $1 million. While it is set to take effect on Jan. 1, 2028—with the first payments due in 2029—the mere threat of its implementation is already shifting the state’s demographics.

“We have until July 2nd to gather about 325,000 signatures to put this on the November ballot,” said Hallie Herzberg, Director of Communications for Let’s Go Washington. “The people deserve the right to vote on this. It’s already driving businesses, employers, and families out of the state.”

The move marks a seismic shift for Washington, which has historically been one of only a handful of states with no personal income tax. However, the legal ground shifted in 2023 when the state’s Supreme Court upheld a 7% capital gains tax, effectively opening the door for broader income-based levies that critics argue violate the state constitution’s requirement that property (which includes income) be taxed at a uniform rate.

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The Seattle state lawmaker, State Sen. Jamie Pedersen, behind Washington’s newly minted “millionaire’s tax” is dismissing concerns that a high-income tax hike will trigger 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, has dismissed concerns of “tax flight.”

“The reality is the millionaire tax is not likely to result in businesses leaving,” Pedersen told a local FOX affiliate following the bill’s signing. He later told Fox News Digital that there is “no evidence” that high earners will migrate to lower-tax jurisdictions like Florida or Texas.

Data from the Association of Washington Business (AWB) suggests otherwise. A recent survey reported by The Center Square found that 44% of business leaders in the state are considering moving their personal residences elsewhere. Furthermore, Washington businesses reported they are now more than twice as likely 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 no longer a friendly place to conduct business,” Proudman said. “Startup companies are being villainized. With the passing of this tax, we have looked at alternative places to move, and we’ll probably end up in Austin.”

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Washington State’s new income tax is facing legal challenges, as some claim it violates the state Constitution. (Joe Sohm/Visions of America/Universal Images Group via Getty Images)

Proudman warned that while the tax is currently branded as a “millionaire’s tax” to gain public favor, the long-term economic consequences will eventually hit middle-class residents as the tax base shrinks.

“They are targeting a very highly mobile cohort of the population,” Proudman argued. “When those folks leave, this will become a tax on everybody. The voters are unwittingly creating an incredibly worse tax situation for themselves. Washington is already the 45th worst state from a tax point of view. This is a constitutionally illegal tax that ultimately will apply to everyone.”

Sen. Pedersen’s office did not respond to Fox News Digital’s latest request for comment.

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