A view of Seattle with Mayor Kate Wilson. [Photo=Fox News] 

Starbucks' U.S. headquarters recently announced the establishment of a new regional headquarters in Nashville, Tennessee, and the relocation of 2,000 jobs, primarily in IT and supply chain management, sparking serious concern even among Democratic city council members.

Seattle Mayor Kate Wilson, often referred to as the "Seattle version of Zoran Mamdani," was elected on promises of tenant protection policies to prevent excessive rent increases and universal early childhood education, similar to Mamdani.

Wilson, who openly identifies as a socialist, has drawn criticism for her remarks regarding the recent phenomenon of billionaires and business tycoons leaving Seattle. She stated, "The rumors of them leaving seem exaggerated," but added, "Well, if they're leaving, goodbye," which was met with disapproval.

Even Democratic city council members, who once welcomed the socialist-leaning Mayor Wilson, are now expressing grave concerns about the departure of American companies.

In fact, while Starbucks is expanding its Nashville regional headquarters, it is gradually downsizing its Seattle headquarters in Washington State, laying off 61 employees due to restructuring in its technology department. The reasons cited are tax and labor cost issues.

Seattle ranks among the lowest in the nation for its tax environment, at 45th place. In contrast, Nashville ranks 8th nationally, indicating a favorable tax environment. Furthermore, Seattle recently introduced the so-called "millionaire's tax," imposing a 9.9% tax on households with an annual income exceeding $1 million, whereas Tennessee, where Nashville is located, has no state income tax.

"The millionaire's tax," signed by Washington Governor Bob Ferguson, a Democrat, is the first personal income tax in the state's history and is scheduled to take effect in 2028. According to Starbucks' 2026 proxy statement, at least six executives reportedly received total compensation exceeding $6 million in the 2025 fiscal year.

The Starbucks headquarters clock tower in Seattle. [Photo=Yonhap News]

Not only does Nashville have no personal income tax, but according to 2024 data from the U.S. Bureau of Labor Statistics, the average hourly wage is $31, which is 5% lower than the national average and 28% lower than in Seattle.

As businesses and individuals leave Seattle, its iconic business tower, the "Columbia Tower Club," has also closed its doors after 40 years due to high vacancy rates.

In response, the Washington State Republican Party criticized on social media (X), "Marxist Mayor Wilson is more concerned with photo opportunities at public restroom renovation events than capital outflow. The city council is passively watching as a once-iconic city crumbles."

This criticism is aimed at Wilson's recent hosting of an event promoting newly installed public restrooms in the city.

Starbucks has explained that this relocation is not a full withdrawal but rather part of an "expansion in the Southeast and a complement to its global headquarters." However, experts anticipate that distrust in Seattle's business community and employment instability will continue for the time being.

Meanwhile, Mayor Wilson was previously reported to have declared at a picket line of baristas last year, "I will not buy Starbucks, and you shouldn't either."

Reporter Lim Yo-hee