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Sen. Bernie Sanders (I-VT) and Rep. Ro Khanna (D-CA) proposed a federal 5% annual tax on wealth above $1 billion.
States and localities are simultaneously advancing “tax-the-rich” measures—California’s wealth tax is in signature-gathering (25% of required ~875,000 reported as collected) amid strong, well-funded opposition and a proposed federal block on taxing former residents; Washington’s proposed 9.9% millionaires tax is being renegotiated; New York lawmakers are backing higher top rates over property tax hikes; Colorado launched a graduated income tax ballot effort; Oregon advanced an estate tax threshold increase with higher top-end rates; and Rhode Island candidates support a millionaires tax with divergent earmarks.
Federal
New Bill Would Target Billionaires With 5 Percent Wealth Tax – Tax Notes
On Monday, Sen. Bernie Sanders (I-VT) and Rep. Ro Khanna (D-CA) introduced the Make Billionaires Pay Their Fair Share Act. The bill would impose an annual 5% tax on the net value of a taxpayer’s assets exceeding $1 billion. The revenue raised from the bill would be used to provide home health care to seniors through Medicaid and reverse the OBBBA Medicaid provisions.
Democrat’s plan would eliminate federal income taxes for half of U.S. workers – The Washington Post
Sen. Chris Van Hollen (D-MD) is proposing a plan that would eliminate federal income taxes for workers earning at or below a “living wage” (about $46,000 for single filers and $92,000 for married couples). The plan would be paid for by a new surtax of 5% on income above $1 million, 10% above $2 million, and 12% above $5 million.
Bernie Sanders wealth tax proposal would strangle U.S. economic growth – The Washington Post Opinion
The Washington Post Editorial Board discussed Sen. Bernie Sanders proposed federal wealth tax on U.S. billionaires, positioning it as a 2028 Democratic litmus test. The board called it unconstitutional, impractical due to valuation challenges for illiquid assets like art and startups, and likely to drive billionaires to flee, as seen with California’s wealth tax ballot initiative prompting relocations and hobbling competitiveness. They noted that Europe’s failed wealth taxes raised far less than promised amid evasion and exodus, while the U.S. already has a highly progressive system.
Bernie Sanders Wealth Tax on Billionaires: Details & Analysis – Tax Foundation
Sen. Sanders’s proposal is projected to raise $4.4 trillion over 10 years (1.2% of GDP annually) with only 10% evasion, but more realistic models predict significantly less: $3.3 trillion assuming 33% evasion or $2.3 trillion factoring baseline avoidance and behavioral responses, due to high incentives for evasion, threshold distortions, and asset shifts to consumption. The proposal’s cumulative effect equals to a 100% tax on 5% investment returns, likely shrinking the taxable wealth base over time through reduced saving, capital flight, and expatriation despite anti-avoidance rules. The analysis compares the proposal to taxes in European countries which eventually repealed wealth taxes due to low revenue (0.2-1.2% GDP) and administrative burdens, making it a high-risk, unreliable revenue tool compared to existing options.
3 Key Reasons The Proposed 5% Billionaire Wealth Tax Faces Steep Odds – Forbes
Sen. Sanders’ wealth tax proposal would affect ~938 U.S. billionaires with over $1 billion in assets. Critics highlight three major issues: (1) constitutional challenges under the 16th Amendment, which covers income but not wealth which could face Supreme Court scrutiny; (2) valuation difficulties for illiquid assets like art, real estate, or startups, which could lead to disputes; and (3) implementation hurdles like forced asset sales causing market disruptions, capital flight (as seen in California), overly optimistic revenue estimates, and precedents from countries like France repealing similar taxes due to low yields and evasion.
California
SEIU-UHW’s wealth tax initiative has reached 25% of required signatures (874,641 needed) for the 2026 ballot. Competing initiatives by Building a Better California ($35M raised, including $20M from Sergey Brin) include prohibiting post-2026 tax exemptions from Prop. 98 education funding, banning new taxes on retirement/savings or retroactive levies, and requiring special tax recipients to cut low-performing programs. To qualify for the ballot in November, the deadline for signature verification is June 25.
Bill Would Block Proposed California Wealth Tax On Former Residents – Checkpoint News
U.S. Representative Kevin Kiley (R-CA) introduced the Keep Jobs in California Act, a federal bill that
would prohibit any state from imposing a retroactive tax on the assets of individuals who no longer live in
that state. In California, several new opposition initiatives have been filed to counter the wealth tax proposal, including the Budget Stability Act would raise the voter approval threshold to two-thirds for any new, one-time taxes.
The Push for 875,000 People to Help Get California Billionaire Tax on the Ballot – WSJ
The California’s SEIU-UHW union wealth tax ballot proposal needs 875,000 signatures by mid-April. Backed by figures like Bernie Sanders at rallies and polling at 62% support internally (though a rival poll shows 48%), the $25 million-funded campaign faces Gov. Gavin Newsom’s warnings of billionaire exodus, revenue drops projected by the Legislative Analyst’s Office, and opposition initiatives from tech moguls like Sergey Brin. Organizers have recruited nearly 5,100 volunteers and paid petition circulators to collect signatures. SEIU-UHW chief of staff Suzanne Jimenez stated that a billionaire tax emerged as the most popular idea among voters after testing various options, rooted in labor movement traditions but solidified into a concrete plan following President Trump’s OBBBA.
Colorado
Graduated Income Tax Petition Drive Launched in Colorado – Bloomberg Tax
A Colorado coalition, Protect Colorado’s Future, launched a petition drive on Feb. 27, 2026, for Initiative 195 to create a graduated income tax system on the November ballot. The proposal would replace the state’s flat 4.4% rate with six brackets topping at 9.5% for incomes over $1 million. The measure, cleared by Secretary of State Jena Griswold, aims to raise $2.7 billion annually for education and human services, offering cuts to 97% of taxpayers earning under $500,000 while increasing levies on the top 3%. The initiative is facing a Colorado Supreme Court challenge to its title.
Washington
‘Millionaires tax’ would affect 1,000 in county – Camas-Washougal Post-Record
Around 1,000 taxpayers in Clark County would owe the proposed 9.9% “millionaires tax” under Senate Bill 6346, which targets income above $1 million starting in 2028. Local business owners and leaders worry the tax could drive high earners and companies to relocate from the area. Gov. Bob Ferguson is still unsatisfied with the bill in its current state and has demanded more tax relief for small businesses and lower-income families.
WA governor: Passage of income tax could slip to 2027 – Washington State Standard
Washington Gov. Bob Ferguson warned that the 9.9% “millionaires tax” on income over $1 million (Senate Bill 6346) might slip to 2027 if Democrats don’t agree on dedicating most of its $3 billion annual revenue to tax relief for working families and small businesses, despite optimism from Senate Majority Leader Jamie Pedersen and House Finance Chair April Berg that a deal can be reached by session’s end on March 12. The bill, facing court challenges, ballot threats, GOP opposition, and pushback from AI leaders urging a capital gains tax hike instead, has advanced through committees but requires revisions to satisfy Ferguson’s demands before collections begin in 2029.
New York City
Poll: New Yorkers back wealth tax over property tax hike – The Center Square
A Siena Research Institute poll shows New York City voters favor an income tax increase on residents earning over $1 million, rather than broad property tax hikes, to address Mayor Zohran Mamdani’s $5.4 billion budget deficit. The proposal, needing state approval from Gov. Kathy Hochul and lawmakers, includes a 2% income tax increase on millionaires and a corporate tax rate hike to over 22%, with strong backing from Democrats despite concerns about business flight to low-tax states.
Democratic state lawmakers in New York to back tax hike on rich – POLITICO
Next week, New York Democrats in the state Senate and Assembly plan to propose higher income tax rates on wealthy residents in their upcoming non-binding budget resolutions, despite Gov. Kathy Hochul’s opposition to broad tax hikes in her $263 billion state budget. While lawmakers have long included such proposals, top leaders like Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie insist they can help New York City without property tax increases, after Hochul agreed to $1.5 billion in extra aid.
Oregon
Oregon estate tax bill heads to House, would increase threshold – Statesman Journal
On Feb. 24, Oregon Senate Bill 1511 was approved by a vote of 22-5 and sent to the House. The proposal would raise the state’s estate tax threshold from $1 million to $2.5 million, while increasing taxes on estates over $3 million by 3.9%. Oregon’s current $1 million threshold is the nation’s lowest, exposing many non-millionaires to the tax paid by estates before inheritance. Supporters say it is relief for the middle-class, but opponents like Sen. Mike McLane warn it could drive wealthy residents to relocate and establish residency elsewhere to avoid higher rates.
Texas
This week, Texas State Representative James Talarico won the Democratic U.S. Senate primary, defeating Rep. Jasmine Crockett amid high turnout, positioning him for a general election against either Sen. John Cornyn or Attorney General Ken Paxton. His campaign emphasizes economic populism, framing the core divide as “top vs. bottom” rather than partisan lines, advocating for public education and policies to counter wealth concentration. Talarico supports taxing the wealthy as part of this class-focused agenda to empower working people.
Rhode Island
Rhode Island gubernatorial candidates Gov. Dan McKee and primary challenger Helena Buonanno Foulkes both support a millionaire’s tax (a 8.99% rate on income over $1 million) but differ on how to use the revenue. Gov. McKee’s proposal would feed the general fund. Foulkes proposed dedicating over $1 billion in projected eight-year revenue to a “Rhode Home Program” revolving fund for building 20,000 homes and apartments.
Other
Tax-the-Rich Campaigns Arise Across US as Billionaires Push Back -Bloomberg Law
Tax-the-rich campaigns continue to accelerate across the country, led by the California proposal for a one-time 5% tax on billionaire assets. Parallel efforts are surfacing in Washington, Rhode Island, Virginia, and Texas. The proposals have generated opposition from Governors Gavin Newsom and Kathy Hochul and billionaire-funded countermeasures spearheaded by figures such as Sergey Brin.
Tax the Rich. Why That Chant Is Louder Than Ever. – Barron’s
As U.S. wealth inequality widens and deficits grow, proponents argue the ultrarich pay disproportionately low taxes by avoiding income through loans against assets, unrealized gains, and inheritances. Opponents warn of billionaire flight, administrative burdens, and constitutional hurdles like those in Moore v. U.S. Tax experts advocate for reforms such as taxing inheritances as income or marking transfers like Canada does to capture untaxed wealth without new asset taxes.
A Tech Tax Revolt Against Democrats – WSJ Opinion
Washington state Democrats are advancing their income tax on earnings over $1 million despite public opposition, constitutional concerns, and warnings from a dozen AI tech leaders—including Oren Etzioni and Luis Vargas—who urged Gov. Bob Ferguson to pause it. They argued it would undermine the tech sector, slow AI innovation, and drive businesses and talent to competitors like California and Texas. A Washington businesses survey shows many firms are considering leaving since the proposal, with 44% of owners eyeing personal relocation.
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