Fisher Investments moved its headquarters from Washington state to Plano due to a state supreme court ruling on taxes.
A few days ago, I brought readers the news of Fisher Investments, which had decided to move its corporate headquarters to Dallas Fort Worth, Texas. There have been some more developments to the story.
Let's take a quick look.
The tax ruling
On Friday, Fisher Investments, founded in 1979 by Ken Fisher, announced they would move their corporate headquarters to Plano thanks to "a state supreme court ruling in Washington that upheld the constitutionality of a tax on its wealthiest residents."
On Friday, Washington state’s high court voted to "uphold a capital gains tax that applies a 7% tax on the sale of financial assets such as stocks and bonds." The tax only applies to profits over $250,000, not including real estate or retirement accounts.
This would affect only the top 0.1% wealthiest people- the target client for Fisher Investments.
The company issued a brief statement after the ruling.
"In honor of the Washington State Supreme Court's wisdom and knowledge of the law, and in recognition of whatever it may do next, Fisher Investments is immediately moving its headquarters from Washington State to Texas."
Texas, of course, has no income tax. Ken Fisher, a billionaire listed among the richest 400 people in the nation, has Dallas as his residence.
Latest update
Today the company issued a further statement on the move.
“When the Washington State Supreme Court can make extraordinary decisions and overwhelmingly so — seeming to legislate from the bench versus upholding the state constitution — that could allow for anything in the future and probably will. We won’t wait until they impair us, inconsistent with basic concepts of the law, before protecting everyone’s interests.”
They also advised their new corporate headquarters would be in the International Business Park, at 6500 International Parkway in Plano. Employees in Washington won't be forced to move to Plano, and Fisher Investments expects to add more jobs in the Dallas area due to the move.
Texas Gov. Greg Abbott was quick to boast of the impact this will have on Texas.
"Ken Fisher Boosts Wall Street West With $197 Billion Texas Shift He’s joining a well-worn path of finance, tech & industrial giants who recently moved to Texas because of a friendly regulatory environment, zero income taxes & affordable living costs." Texas Gov. Greg Abbott
About Fisher Investments
Fisher Investments is an independent, fee-only investment adviser. As of March 31, Fisher Investments and its subsidiaries manage over $197 billion in assets globally—over $156 billion for private investors, $39 billion for institutional investors, and $2 billion for US small to mid-sized business retirement plans.
Fisher Investments employs over 4200 people in the United States, including 1400 in Dallas Fort Worth.
Your thoughts
Are you glad to see another business move its headquarters to Dallas Fort Worth? Do you agree with the court decision? Should wealthy people be forced to pay capital gains tax? Should Texas implement an income tax?
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