Jeff Bezos, the entrepreneur behind Amazon, made headlines with his decision to move from Seattle to Miami, sparking speculation about the move’s motives and the long-term impacts.
Capital Taxes, Estate Taxes, and Billionaire Taxes
While Bezos, valued at a staggering $162 billion, cited his affection for Miami and the pull of family ties as the primary reasons for his move, the absence of any mention regarding taxes stirred speculation.
Several recent changes have occurred in the tax landscape. In Washington, where Bezos was previously based, the Washington State Supreme Court upheld a 7% tax on capital gains above $250,000 earlier this year.
Passed by the 2021 Washington State Legislature, the Douglas County Superior Court ruled in March 2022 that the capital gains excise tax was unconstitutional and invalid. Washington State appealed the ruling, and with all legal challenges now settled, a 7% tax on any long-term capital gain in excess of $250,000 in a calendar year will be imposed.
Bezos has been selling his Amazon stock investments annually to fund Blue Origin, his space company. According to news reports, he sold about $15.7 billion worth of Amazon stock between 2020 and 2021. Given the passage of the capital gains tax, he would face a substantial tax hit due to the sale of his Amazon stock. Florida’s lack of a capital gains tax.could provide significant tax savings.