Wealth Tax News – 4/10/2026

This week’s developments show wealth-tax and “millionaires tax” proposals gaining traction across both federal and state politics, with debates spanning Democratic tax policy at the national level and active fights in California, Washington, Maine, Illinois, and New York over how aggressively to tax top earners. Overall, the landscape is becoming more contested, as ballot campaigns, polling, litigation, and 2026 campaign positioning all push wealth-tax policy from a niche issue into a central fiscal and political battleground.

Federal

Tax cuts are the hot new idea for Democrats – NBC News

Democratic politicians are increasingly pitching tax cuts to address cost-of-living concerns and appeal to voters ahead of the 2028 races. Sens. Cory Booker (D-NJ) and Chris Van Hollen (D-MD) propose federal income tax exemptions up to $75,000–$92,000 for married couples, while gubernatorial hopefuls like Katie Porter (D-CA) and Keisha Lance Bottoms (D-GA) advocate eliminating state income taxes for lower earners and teachers. The trend has sparked a “wonk revolt” from experts who warn it shrinks the tax base, undermines funding for Democratic priorities like childcare and Medicare, and copies Reagan-era rhetoric on tax issues.

California

Rep. Ro Khanna on the Iran war, wealth tax proposal – CNBC (video at 7:00)

Rep. Ro Khanna (D-CA) discussed California’s wealth tax proposal and about the state’s success long term. Rep. Khanna said he believe that no one will leave the U.S. if a wealth tax was imposed at the federal level, because doing so would make individuals give up their American citizenship. He also discussed his legislation with Sen. Bernie Sanders (I-VT), the Make Billionaires Pay Their Fair Share Act, and said that after he introduced his bill, billionaires like Bill Ackman and Vinod Khosla came out with alternative plans.

Kevin McCarthy on Iran ceasefire, wealth tax and government shutdown – CNBC (video at 7:45)

Former Speaker of the House Rep. Kevin McCarthy (R-CA) briefly discussed California’s wealth tax proposal and the perception that some individuals do not pay their fair share of taxes. McCarthy said that taxing the wealthy would not survive and that it has not worked economically in the past. He also posed the question on how to grow the economy while allowing people to keep more of what they earn. He noted tax dollars should be spent better and compared California’s high tax system to Florida’s low tax system, asserting that the public systems in place are not necessarily better in high tax regimes.

California Can’t Afford the Reckless Gamble of a Billionaire Tax – Bloomberg Law

Bloomberg’s Tax Insights argue that California’s proposal is a risky and unreliable way to respond to the state’s fiscal issues. It says the tax would create legal and administrative chaos, depend on hard-to-value assets, and likely push wealthy residents out of the state, while failing to provide durable help for health care funding after cuts from the OBBBA.

The architects of California’s wealth tax idea want to clarify things – SFGate

The authors of the California wealth tax proposal are trying to reassure critics that the California’s proposal would not tax founders on more than the fair market value of their actual holdings, even if they have super-voting shares or control rights. Opponents say the measure is vague enough to be interpreted too broadly and could overtax tech founders, discourage innovation, and accelerate wealthy departures from the state, while supporters argue it would apply only to billionaires and help fund health care.

New York City

New York City 2026 Poll: Mamdani Posts Positive Approval at 100 Days, but Majority Say NYC on Wrong Track – Emerson Polling

A new Emerson College Polling/PIX11 survey of New York City voters found strong support for progressive tax measures to close the city’s budget gap. 55% of respondents said the state should raise taxes on the wealthy, and 65% support a millionaire’s tax, particularly among households earning under $150,000, where support reaches 68%. Only 4% favor raising property taxes by 5%, while 41% prefer better management of city spending. On corporate taxes, a plurality (44%) believe a modest corporate tax increase would not drive companies out of the city.

For more results on his polling number, please see here.

Jamie Dimon Warns High Taxes Could Push People Out of New York – Business Insider

JP Morgan CEO Jamie Dimon warned that high taxes in New York and other blue states can push people and businesses to lower-tax places, but he also said Wall Street is not fleeing Manhattan yet. New York office demand seems to remain solid, with vacancies down, rents up, and firms like Bank of America and American Express still expanding there, even as JPMorgan has shifted more jobs to Texas over the past decade.

Washington

Washington business owners voice concerns over state’s new socialist ‘millionaires tax’: ‘We’re afraid’ – NY Post

Washington small-business owners are worried that the millionaires tax will broaden over time and eventually reach regular taxpayers, not just households earning over $1 million. They note concerns that the tax, layered on top of Washington’s other taxes and high labor costs, could reduce investment, accelerate business and employee departures, and worsen the state’s business climate, even as supporters say it will fund school meals, childcare, and tax relief for families and some small businesses.

Lawsuit filed over WA’s millionaires tax – FOX 13 Seattle
Washington’s new 9.9% tax on income above $1 million is facing an immediate legal challenge, with Let’s Go Washington (LGW) suing after its referendum to repeal the law was blocked under the state’s “necessity clause.” Supporters say the tax will raise more than $3 billion a year for free school meals, childcare, tax credits, and small-business relief, while critics argue it is really a broader income tax that could hit farmers, business owners, and others beyond the wealthy.

Washington “millionaires” income tax faces lawsuit challenging constitutionality – Axios Seattle

Washington’s new millionaire tax is already facing a constitutional challenge that could block it before it takes effect in 2028. The lawsuit argues that Washington’s constitution requires a uniform tax on property, that past court rulings have treated income as property, and that the law will likely end up before the state Supreme Court.

Maine

Maine’s Democratic majority pushes through budget with millionaire tax, relief checks – USA Today

On April 8, Maine Democrats gave initial approval to a $227 million budget package that raises the state’s top income tax rate by 2% on incomes over $1 million and sends $300 relief checks to some residents, funded partly by $292 million from the rainy day fund. The plan aims to offset cuts from the OBBBA and support programs like eviction prevention and schools. Republicans and business groups criticized Gov. Mills for reversing her no-new-taxes pledge amid strong revenue numbers.

Governor Janet Mills Unveils Initial Policy Platform for U.S. Senate – Janet Mills for Maine

In Gov. Mills’ policy platform announcement, she proposes federal tax reforms to unrig the economy in favor of working families. Her key ideas include a wealth tax on the net worth of top earners, closing tax code loopholes that let the ultra-wealthy pay lower rates than many workers, raising the corporate minimum tax to ensure profitable companies pay their share, rolling back Trump’s OBBBA cuts for the wealthy individuals and corporations.

Handled well, Maine ‘millionaire’s tax’ can set a good precedent – Portland Press Herald

The Portland Press Herald’s Editorial Board discussed Maine’s proposed 2% surtax on incomes over $1 million and how it got Gov. Janet Mills’ endorsement despite her past opposition to tax increases, with supporters calling it a fair way to raise $96 million annually from just 0.4% of taxpayers. A recent poll shows 69% voter approval across party lines, though some worry about potential wealthy flight from the state. The Board urged for transparent tracking of how the revenue is spent to build trust and prove its value.

Maine business community opposes millionaires’ tax – Spectrum Local News

Maine business leaders, including the state and Portland chambers of commerce, are opposing Maine’s proposed millionaire’s tax. They warn it could hit small businesses (especially owners during one-time sales of their businesses), discourage talent attraction and deals, signal an anti-growth direction, and compound economic uncertainty when paired with using $300 million from the rainy day fund for relief checks and other priorities. Democrats defend it as targeted relief for OBBBA cuts, health care, childcare, and low-income Mainers.

The Democratic Race to the Left – WSJ

The Wall Street Journal Editorial Board argues that Gov. Janet Mills (D-ME), once viewed as a moderate Democrat, is shifting left to compete in her Senate primary against the progressive challenger, Graham Platner. Gov. Mills now supports raising Maine’s top income-tax rate on millionaires by two percentage points to 9.15%, the highest in New England. The Board criticizes her reversal from earlier opposition to tax hikes despite strong state revenue growth, suggesting the move is driven by political pressure from Platner, who promotes a wealth tax and Medicare for All.

Illinois

A ‘Millionaire’s Tax’ Could Raise Billions in Annual Revenue for Illinois: Study – WTTW

An Illinois study says a 3% surtax on residents earning $1 million or more could raise as much as $5 billion a year by 2033, with supporters arguing the money could fully fund public schools and provide property-tax relief. Critics say that the tax could hit some small businesses, may not meaningfully reduce property taxes, and would not help more than spending caps, pension reform, and tighter local tax controls.

Other

Billionaire fortunes have reached all-time highs under Trump. So has the movement to tax them – The Guardian

The Guardian describes a growing movement to tax billionaires across at least 10 states, with California, New York, Washington, and Michigan among the most visible battlegrounds. It highlights activists pushing wealth taxes to fund schools, hospitals, and other social services, and says the effort is gaining momentum alongside Bernie Sanders’s legislation, the “Make Billionaires Pay Their Fair Share Act,” and Mayor Mamdani’s tax-the-rich policy ideas.

The Red State Tax Revolution vs. the Blue State Exodus – All Things with Kim Strassel – WSJ Podcasts

In this WSJ podcast, Kim Strassel and Grover Norquist highlighted the OBBBA, especially permanent lower individual rates, full business expensing, a larger estate-tax exemption, and Trump accounts. Norquist argues that flat-tax and spending-cap reforms in the states are driving competition, while warning that blue states’ tax increases on wealthy individuals often spill onto the middle class and push people and investment away. He also calls for more federal tax reform, including indexing capital gains for inflation, expanding expensing, and cutting the corporate tax rate further to boost growth and investment.

What is a wealth tax? Here’s what it is, and what it won’t solve – Americans for Prosperity

Americans for Prosperity argues that a wealth tax would not solve the real problem Americans are facing: rising costs driven by government overspending and inflation. It says such a tax would be hard to value and enforce, could hurt small businesses and family assets, and would raise less revenue than supporters expect, while doing little or nothing to reduce the cost of living.

Growing number of blue states proposing wealth, exit taxes – CBS

At least ten blue states are considering or have adopted wealth or exit taxes as they try to offset revenue losses from residents and businesses moving to lower-tax states. Highlighting proposals from California, Washington’s and ongoing concerns in New York, the article discusses migration data showing California and New York losing tax revenue and population as Florida and Texas gain.

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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