Wealth Tax News – 3/27/2026

This week saw renewed federal momentum on taxing extreme wealth: Sen. Chris Van Hollen (D-MD) reintroduced his Strengthen Social Security by Taxing Dynastic Wealth Act to restore 2009 estate tax levels, while Sen. Elizabeth Warren (D-MA) and House allies revived the Ultra-Millionaire Tax Act imposing a 2% annual levy above $50 million (3% above $1 billion) alongside anti‑evasion measures.  In the states, California’s proposed 5% billionaire tax dominated headlines amid heavyweight funding battles, mixed revenue/exodus analyses, and polling showing majority support.  Washington Republicans launched a bid to repeal the newly passed 9.9% millionaires tax.  Elsewhere, New York City readies a Sanders‑headlined rally to raise taxes on the wealthy, Maine Democrats press new top brackets and a 2% surtax despite the governor’s resistance, Illinois commentary urges governance reforms before “tax the rich” measures, and Denmark’s snap election features a 0.5% wealth tax proposal as a marquee issue.

Federal

Van Hollen Introduces Bill to Strengthen Social Security by Ending Republicans’ Tax Giveaways for Ultra-Wealthy Estates

On Wednesday, Sen. Chris Van Hollen (D-MD) introduced the Social Security by Taxing Dynastic Wealth Act. The bill would:

• Increase the top estate and gift tax rate from 40% to 45%
• Lower the exemption amount from $15 million ($30 million for joint filers) to $3.5 million ($7 million for joint filers)
• Set the lifetime gift exemption limit at $1 million ($2 million for joint filers)
• Maintain the generation-skipping transfer tax

Revenue collected under the bill would be deposited into a combined trust fund consisting of Social Security’s two existing funds—the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.

Warren, Jayapal, Boyle, 45+ Lawmakers Renew Push for Wealth Tax on Ultra-Millionaires and Billionaires
Sen. Elizabeth Warren (D-MA) and Reps. Pramila Jayapal (D-WA) and Brendan Boyle (D-PA) re-introduced the Ultra-Millionaire Tax Act, which would impose a 2% annual tax on the net worth of households and trusts over $50 million and 1% annual surtax (3% tax overall) on the net worth of households and trusts above $1 billion.

California

Would California’s Wealth Tax Be Temporary? – Tax Foundation

In an analysis by the Tax Foundation, Jared Walczak reviews California’s proposed Billionaire Tax Act, a one-time 5% wealth tax payable upfront or over five years, questioning whether it would truly remain temporary despite supporters’ claims and tying it to offsetting the One Big Beautiful Bill Act’s (OBBBA) cuts. He highlights advocates’ long-standing push for permanent wealth taxes as seen in prior California bills, other states, and even federal proposals, suggesting that ideological commitment overrides the “temporary” framing. He also cited historical precedents of short-term taxes becoming fixtures in states like California, New York, and Connecticut. While the proposal’s language likely prevents legislative extension without voter approval, Walczak said it could erode the tax base through billionaire exodus, invite future permanent taxes amid shortfalls, and spur preemptive departures as high earners anticipate recurrence, even if legal challenges to the January 1, 2026, provision are viable.

California Billionaires Are Spending Big in Costly Wealth-Tax Fight – WSJ

A group of California billionaires, led by Google co-founder Sergey Brin, is fighting California’s proposal tax by funding rival ballot initiatives and spending heavily to qualify them for the November ballot. Through the organization Building a Better California, which has raised nearly $80 million ($45 million from Brin), they’ve poured over $33 million into countermeasures that would limit new and retroactive taxes, tighten spending rules, and require more financial audits. To secure enough voter signatures, these campaigns are offering signature collectors $15 per valid signature, the highest rate this year, driving up costs for competing efforts such as the Billionaire Tax Act, backed by the SEIU-United Healthcare Workers West union.

Silicon Valley investor Ron Conway says California’s proposed wealth tax ‘could’ pass if it’s up to voters – Business Insider

Ron Conway, Founder of SV Angel, is actively working to block California’s proposed wealth tax before it reaches the November ballot, warning that it could pass if voters get the chance to decide. Conway said his goal is to help Gov. Newsom, who also opposes the measure, negotiate a deal that disrupts the initiative by preventing it from gathering enough signatures. Conway is working with other organizers of the Building a Better California group, which is the main vehicle backing three countermeasures designed to undercut the wealth tax. Conway also personally contributed to Stop the Squeeze, another group opposed to the proposed tax.

The union man who unleashed a political earthquake in California – POLITICO

Dave Regan, President of SEIU-United Healthcare Workers West, helped create the wealth tax ballot initiative to offset federal Medicaid cuts from the OBBBA. He is known for his aggressive “leverage play” tactics, filing nearly 50 measures since 2009 to get results from healthcare companies like DaVita, securing minimum wage increases and union growth. He is steaming ahead while undeterred by labor divisions, billionaire exodus, and a counteroffensive funneling tens of millions into rival initiatives.

Californians want to tax billionaires. They’re threatening to leave. – USA Today

California’s proposal has strong voter support (~50% per UC Berkeley/Politico polling) but faces fierce opposition from Gov. Newsom and departing billionaires like Brin, who are fleeing to lower-tax states like Florida and Texas. Critics, including the National Taxpayers Union Foundation and Tax Foundation, warn that an exodus of high earners could erase future income-tax revenue exceeding the tax’s one-off gains, while administrative complexities in valuing illiquid assets loom large. Though wealth taxes are gaining traction elsewhere, such as Massachusetts’ 4% surtax on millionaires and Washington’s 9.9% recently passed legislation, supporters like the Institute on Taxation and Economic Policy dismiss flight risks as minimal for the ultra-rich, framing the measure as a populist response to inequality where the top 10% hold 60% of U.S. wealth.

California’s Billionaire Tax Proposal Is Already Doing Damage – City Journal

California’s proposal is already shrinking the state’s tax base by prompting wealthy residents to leave, undermining revenue claims that it would raise $100 billion. Drawing on a Stanford–Hoover Institution study, the article says confirmed exits by several high-profile billionaires have already removed over a quarter of the originally assumed taxable wealth, cutting projected receipts to about $40 billion and potentially less once ongoing departures are considered. Even if voters ultimately reject the measure, the author contends that recurring ballot threats of similar taxes will keep driving entrepreneurs and capital out of California, leaving the state fiscally worse off.

Will California’s billionaire tax pay off? New studies clash – Sacramento Bee

Two competing studies clash over California’s proposal to offset the OBBBA cuts to healthcare, versus a Hoover Institution analysis estimating just $40 billion after adjusting for already-departed billionaires and likely further exits. Backers like SEIU-UHW argue the Jan. 1, 2026 residency rule limits flight and cite overperformance of similar taxes in Massachusetts and Washington, dismissing Hoover’s work as bad faith, while Hoover counters that billionaires’ fears of recurrence, not just the one-off tax, drive permanent departures, shrinking long-term income tax revenue. A neutral UNC expert review finds methodological differences but agrees the tax will spur some exodus amid residency disputes.

Washington

WA GOP planning to repeal ‘millionaires tax’ – FOX 13 Seattle

Washington state Republicans, led by Rep. Jim Walsh, plan to repeal the newly passed 9.9% “millionaires tax” on residents earning over $1 million via a ballot initiative requiring about 340,000 signatures by early July after Gov. Bob Ferguson (D-WA) signs it into law. Rep. Walsh says it is unconstitutional and economically damaging, especially amid a thin budget reserve, while Gov. Ferguson calls it narrowly targeted at under 0.5% of residents but anticipates court challenges and public backlash.

Massachusetts

Massachusetts Lost $4.2 Billion in Income After Millionaire Tax Took Effect – Bloomberg

According to a recent report, Massachusetts had a net outflow of $4.2 billion in adjusted gross income (AGI) in 2023 during the first year of its 4% millionaire surtax on incomes over $1 million. While the tax has generated over $6 billion for schools and transportation, opponents like the Pioneer Institute argue it shrinks the tax base and erodes competitiveness. Organizations in Massachusetts are pushing for three tax-related ballot initiatives, one of which includes an initiative to reduce the state income tax rate from 5% to 4%.

New York City

Sanders Will Rally for N.Y. Tax Increase. Mamdani Does Not Plan to Join. – The New York Times

Sen. Bernie Sanders (I-VT) will headline a March 29 rally in the Bronx to raise taxes on the wealthy while supporting NYC Mayor Zohran Mamdani’s (D-NYC) push for income and corporate tax hikes to fund social services. Mayor Mamdani plans to skip the event to avoid antagonizing the Gov. Kathy Hochul (D-NY). The event, organized by Democratic Socialists of America and supporters, highlights tension points as Mayor Mamdani balances his agenda, including 2% surtaxes on millionaires and luxury properties, with Gov. Hochul’s resistance. While Democratic state legislators back the increases and Sen. Sanders frames it as a national fight against inequality, Gov. Hochul prefers state aid over new taxes, prompting frustration that Mayor Mamdani’s peacemaking strategy may weaken their leverage.

Maine

Maine lawmakers are, again, attempting to raise taxes on the wealthy – Maine Morning Star

In the Maine state legislature, progressive Democrats are pushing two bills to raise taxes on high earners. LD 229 would add new top income tax brackets with revenue earmarked for property tax relief and grocery exemptions. LD 1089 would impose a 2% “millionaire’s tax” surtax, which is projected to generate $64 million, and which was narrowly rejected by both chambers last year (and so remains tabled). Gov. Janet Mills (D-ME) has opposed or vetoed similar efforts while citing minimal relief for lower-income residents.

Illinois

Opinion: Tax the super-rich? Not if Illinoisans distrust government – The Chicago Tribune

In an opinion piece, Andy Shaw argues against taxing the super-rich in Illinois due to deep public distrust of government while citing the state’s history of waste, fraud, corruption, and inefficiency that fuels skepticism even among potential beneficiaries. While acknowledging wealth inequality and proposals like California’s wealth tax, he notes that high earners often flee high-tax states like Illinois for low-tax havens such as Florida and Texas, rejecting schemes perceived as blank checks for politicians.

Other

Democrats Are on a Taxing Binge – WSJ

The Wall Street Journal Editorial Board warns of a nationwide Democratic “taxing binge” amid surging state revenues (up 43% from 2019-2025), spotlighting proposals in California, Washington, New York, Rhode Island and Virginia—while noting federal pushes like Sens. Cory Booker (D-NJ) and Chris Van Hollen’s (D-MD) bracket hikes to 43%-49%, framing the shift as Sanders-style ideology post-2024 election loss.

Economy, Greenland and wealth tax among issues in Denmark’s election – Reuters

Denmark’s snap election on March 24, pits Prime Minister Mette Frederiksen’s center-left Social Democrats, holding a slim poll lead, against a fragmented field, with her defiance of President Trump’s push to acquire Greenland bolstering her support amid debates over economy, environment, healthcare, and immigration. A key point is Frederiksen’s proposal for a 0.5% wealth tax on fortunes over 25 million Danish crowns ($3.87 million) targeting the nation’s 20,000 richest, pitched to fund schools and tax relief but sparking fierce equality debates. While her bipartisan government faces likely defeat, centrist Moderates or votes from Greenland and the Faroe Islands could prove critical in forming a minority cabinet via the “King’s Round.”

Family Enterprise USA Action engages with legislators on Capitol Hill on behalf of family offices, successful families, and family-owned businesses. It is focused exclusively on the critical tax and economic policies that impact them. Since 1995, FEUSA Action has been the leading advocacy group working daily in Washington, D.C., to reduce and eliminate estate tax, gift tax, and generation skipping transfer tax while blocking increased income and capital gains taxes, the creation of a wealth tax, and other hostile policies that punish hardworking taxpayers and success in the U.S. It is a bipartisan 501.c4 organization.

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