AOME Architects' managing director, Mark Oster, reports that Washington's proposed income tax is causing immediate economic damage. Following the cancellation of a $20 million custom home, the firm began layoffs and expanded its operations into Idaho.
The $20 million project that triggered three layoffs
A single canceled custom home project has already caused immediate job losses for AOME Architects. Mark Oster, the firm's managing director, told KIRO that the $20 million development was scrapped despite the client having already invested $1 million into the process. As reported by the source, the decision to pull the plug was driven by the proposed "millionaires tax" and existing estate taxes.
The economic impact of such a cancellation extends far beyond the architecture firm itself. Oster explained that a single $20 million project can support as many as 1,000 different workers, including contractors and specialized tradespeople. While the wealthy clients may leave, the local laborers who rely on these developments are left without income.
A strategic pivot toward Coeur d'Alene and Hayden Lake
AOME Architects is proactively moving its operations to counter the contraction in Washington. mark Oster and his sales director are expanding their reach into the Idaho lakes region, specifically targeting Coeur d'Alene and Hayden Lake. This move is a direct response to the capital flight occurring as weallthy residents seek more welcoming tax environments.
This shift to Idaho is part of a broader movement of high-net-worth individuals fleeing the Pacific Northwest. Oster noted that he is working with a group of 36 to 40 architects and contractors who are all witnessing similar losses. One major contractor , which employs between 40 and 50 people, has already seen up to eight projects canceled as clients prepare to leave the state.
Why 24% of surveyed employers are eyeing an exit
Recent data suggests that the sentiment among Washington businesses is rapidly deteriorating. According to a survey from the Association of Washington Business, 24 percent of 400 surveyed employers are now considering leaving the state, a significant jump from the 17 percent reported just months ago.
Despite these indicators, political leaders like Senator Jamie Pedersen, Representative Timm Ormsby, and Representative Natasha Hill have tended to downplay the possibility of residents leaving. Oster argues that lawmakers remain unaware of the true scale of the problem because private cancellations do not generate official government statistics or press releases. These "quiet exits" happen behind closed doors, leaving a gap between political perception and economic reality.
Lessons from Kathy Hochul’s New York tax battle
The current tension in Washington draws direct parallels to the fiscal challenges faced by New York. Oster referenced Governor Kathy Hochul, who in 2022 suggested wealthy residents should "get out of town," only to later reverse her stance as the state's tax base eroded. Using the analogy of a "golden goose," Oster warned that politicians often squeeze the productive class too hard in hopes of increasing revenue,only to find the goose has flown away.
Who is actually driving the quiet exit from Washington?
While the anecdotal evidence from AOME Architects is stark, several questions remain regarding the true scale of the exodus. It is currently unverified how many of the 36 to 40 architects Oster mentioned have already finalized their moves to Idaho . Additionally, the report only provides the perspective of Oster and the Association of Washington Business, leaving the state's official economic data and the views of proponents of the tax unexamined.
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