Soak and Sage Founder's Exit: Impact of Washington's Tax Policies on Small Businesses (2026)

Soak and Sage founder Leslie Goeres is making a bold move, leaving her beloved Washington state for the sunny skies of Nashville. This decision is not just about business; it's a personal and emotional journey that highlights the challenges faced by small businesses in a rapidly changing economic landscape. Goeres' story is a cautionary tale for policymakers and a wake-up call for the state's economic future.

A Business Decision, a Personal Dilemma

Goeres built Soak and Sage from the ground up in Renton, a testament to her hard work and vision. The Seattle Times recognized her spa as the best in the Pacific Northwest, a true achievement. However, the recent introduction of a 9.9% income tax in Washington, coupled with other taxes, has created an unfriendly business environment. The decision to expand to Nashville was not made lightly, but the math was clear: Nashville offered a 25% cost advantage in terms of taxes, rent, and overhead.

Permitting: A Key Factor

The permitting process played a significant role in Goeres' decision. In Washington, it took seven to eight months to get Soak and Sage built. Nashville, on the other hand, projected a much faster timeline of six to eight weeks. This efficiency is partly due to the city's support for third-party permit expediters, who can review and stamp plans before the city signs off, significantly speeding up the process.

The Income Tax: A Personal Blow

The state income tax was the final straw for Goeres. It's not just about the business; it's personal. She has two children, one at the University of Washington and another in middle school. The prospect of moving them to a different state is a challenging and emotional decision. Goeres' story highlights the human impact of economic policies, showing how they can disrupt families and communities.

A Business Exit Trend

Goeres' decision is not an isolated incident. According to a spring 2026 Association of Washington Business (AWB) survey, nearly one in four Washington employers are considering leaving the state. This trend is a red flag, with AWB president Kris Johnson calling it a "911 emergency" for the state's economy. The narrative that businesses are the problem is misleading, as Goeres argues that policies intended for larger corporations often harm smaller businesses.

A Call to Action

Goeres' move to Nashville is a wake-up call for policymakers and small business owners alike. She urges them to consider the impact of taxes on small businesses, which are often the backbone of the economy. The high sales tax rate and other excise taxes are putting small businesses like hers under immense pressure. It's a reminder that economic policies should support, not stifle, the growth and success of small businesses.

Conclusion: A State's Future at Stake

As Goeres leaves Washington, she takes her business and her family with her. This is not just a personal loss; it's a loss for the state's economy and its future. The state must address the challenges faced by small businesses to ensure its long-term prosperity. The story of Soak and Sage is a powerful reminder that economic policies have real-world consequences, and it's time for Washington to listen and take action.

Soak and Sage Founder's Exit: Impact of Washington's Tax Policies on Small Businesses (2026)

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