Wealth Tax News – 4/3/2026

Momentum is building behind “tax the rich” policies ahead of 2028, with national Democrats debating wealth and billionaire taxes and blue states advancing high‑earner measures: Washington enacted a 9.9% tax on income over $1 million starting in 2028, while California, New York, Maine, Colorado, and Vermont pursue new levies ranging from one‑time wealth taxes to higher top brackets. Polls show strong voter appetite for taxing billionaires, but party leaders and advocates split over whether new revenue should fund middle‑class tax cuts or targeted programs, as business groups and commentators warn of outmigration and fiscal volatility. Separately, President Trump argued states—not the federal government—should raise taxes to fund childcare, underscoring a growing federal–state divide on fiscal priorities.

Please find summaries of relevant articles with web links below. 

Federal

Left pushes wealth tax as early litmus test for 2028 Dems – Axios

Left-wing activists are pushing prospective 2028 Democratic presidential candidates to endorse a wealth tax, with figures like Sen. Chris Van Hollen (D-MD) and Reps. Alexandria Ocasio-Cortez (D-NY) and Ro Khanna (D-CA) already voicing support. The issue is focused on Governor Gavin Newsom (D-CA), who has rejected a state wealth tax out of fear it would drive away wealthy residents, even as activists argue that taxing extreme wealth should be a test for the party. Tax the Greedy Billionaires, a campaign for the proposal, released polling [link] suggesting that most Democratic voters would view Newsom less favorably if they thought he opposed higher taxes on the rich.

Democrats thinking OT on taxes – POLITICO

Democrats are increasingly backing the idea of taxing the wealthy and big corporations, but they are now wrestling internally over how aggressively to do so and what to do with the revenue, especially as the party prepares for a possible return to power in Washington. Some figures, like Sens. Cory Booker (D-NJ) and Van Hollen, want to pair higher taxes on the wealthy with broad middle‑class tax cuts, while progressive groups such as Tax the Greedy Billionaires and Families Over Billionaires, push either to double down on taxing billionaires or to spend the revenue on strengthening the safety net instead of cutting taxes. A recent poll shows that about 3/4ths of voters, including a majority of Republicans, want higher taxes on billionaires.

Additionally, Families Over Billionaires released a memo regarding proposals to reduce income taxes for middle-income household and noted that Democrats should stop focusing on broad middle‑class tax cuts and instead use higher taxes on the wealthy and corporations to raise revenue for targeted programs that directly address the real drivers of the affordability crisis. The organization argued that tax cuts are politically unreliable and fiscally harmful when the country faces a major revenue shortfall.

Trump suggests states raise taxes to pay for child care, says federal government can’t afford it – The Hill

President Trump said states, not the federal government, should shoulder the cost of child care by raising their own taxes, arguing that Washington cannot afford to fund day care nationwide while also maintaining military priorities. Speaking at a White House Easter lunch, he suggested states could increase taxes to pay for child care while the federal government lowers its own. New Mexico remains the only state with universal child care, financed by oil and gas revenue, while others like New York and Washington are exploring taxes on wealthy residents to fund similar programs.

California

Wealth taxes on billionaires and $30 min. wages: ‘They should pay their fair share,’ advocate says – Fortune

A new UC Berkeley–Los Angeles Times poll shows that 52% of California voters support a proposed one-time 5% wealth tax on the state’s roughly 200 billionaires, while 33% oppose it, with support falling sharply along partisan lines (72% of Democrats and a slim majority of independents in favor, but strong Republican opposition). The measure, part of a broader push by SEIU-United Healthcare Workers West, would raise about $100 billion for health care, education, and food assistance. Advocates link the billionaire tax to a nationwide movement for a $30 minimum wage, arguing both address inequality from opposite ends: ensuring billionaires “pay their fair share” while lifting wages to reflect real living costs.

Washington

Washington State Adopts New Tax on Incomes Over $1 Million – WSJ

Gov. Bob Ferguson (D-WA) signed a bill adopting a 9.9% tax on income over $1 million to take effect in 2028, marking its first-ever state income tax and targeting solely top earners. The new tax is designed to fund childcare programs, free school meals, expanded tax credits for working families, and tax breaks for small businesses, while also eliminating sales tax on diapers, over-the-counter drugs, and hygiene products. Supporters argue it will rebalance a tax system that disproportionately burdens low‑income residents, while Republicans warn it could drive wealthy residents and businesses to lower‑tax states.

California’s Golden Goose Is Already Flying the Coop – WSJ

In any opinion piece, Hank Adler, a professor at Chapman University, warns that California’s proposed wealth tax is already damaging the state’s finances before even reaching the ballot. The prospective measure has prompted several billionaires, including Sergey Brin, Larry Page, and Mark Zuckerberg, to leave California, erasing billions in expected tax revenue. Since the top 1% of taxpayers generate about 40% of the state’s income-tax revenue, their departures deepen projected deficits of $22–$35 billion annually. Adler argues the proposal is fiscally reckless and could invite costly legal challenges if enacted, potentially leaving California with less revenue and greater financial instability.

New York City

Bernie Sanders, in the Bronx, Presses Kathy Hochul to Tax the Rich – The New York Times

At a rally in the Bronx, Senator Bernie Sanders urged New York Governor Kathy Hochul to raise taxes on the state’s wealthiest residents, backing Mayor Zohran Mamdani’s push for a higher millionaire tax despite the mayor’s absence from the event. Sanders argued that the rich should pay their fair share to fund basic needs like food, housing, and health care, while Mamdani’s plan would raise the city income tax on those earning $1 million or more by two percentage points, affecting roughly 34,000 households. Hochul and business groups have resisted such hikes, warning they could drive wealth out of the state, even as progressive supporters insist voters overwhelmingly want higher taxes on the very rich.

Wall Street Enlists Marine Veteran Steven Fulop to Take On NYC Mayor Zohran Mamdani’s Push to Raise Taxes – WSJ

The Partnership for NYC has named former Jersey City Mayor Steven Fulop as President and CEO to oppose Mayor Zohran Mamdani’s proposed tax hikes on wealthy individuals earning over $1 million and corporations. Fulop has met with NYC Mayor Mamdani and legislators, penned op-eds, and plans anti-tax ads, warning that hikes could drive business elites away to lower-tax states like New Jersey. While polls show voter support for taxing high earners, Gov. Kathy Hochul opposes increases, and state budget proposals include milder hikes. Fulop describes the trajectory “dangerous” for New York’s economic competitiveness.

NY’s wealth tax battle is turning into a state vs. city showdown: Partnership for NYC’s Steven Fulop – CNBC

In an interview with CNBC, Fulop said he penned a letter to Gov. Hochul, with 40 large organizations, saying that the current economic environment and fragile and the NY legislature should be careful with the budget. When asked about the core of the problem of the city’s budget shortfall ($5 billion), Fulop noted the city’s entitlement programs are causing the issues, specifically noting the rental assistance program is growing at 4% per month. They also discussed NY’s progressive tax system and the “tax the rich” rally from the past weekend.

Maine

Janet Mills Backs Maine Millionaire Tax in Reversal Ahead of Senate Primary – Bloomberg

Gov. Janet Mills (D-ME) has reversed her stance and now supports a proposed “millionaire tax” that would raise the state’s top income tax rate to 9.15% on earnings over $1 million for individuals and $1.5 million for joint filers. Once a critic, Gov. Mills now argues the tax is needed to preserve funding for health care, education, and property-tax relief due to federal cuts. It is a notable shift as she approaches a tough Democratic Senate primary challenge from Graham Platner, who has campaigned on taxing the wealthy.

Tax on millionaires, rainy day fund anchor new budget plan – Maine Morning Star

The Maine Legislature’s Appropriations and Financial Affairs Committee advanced a supplemental spending plan that includes a new 2% surtax on income over $1 million. Gov. Mills said the millionaire tax is needed to sustain investments in health care, education, and local relief amid federal cuts tied to the funding cuts from the One Big Beautiful Bill Act (OBBBA). Republicans criticized the plan as fiscally reckless and partisan, warning it could drive wealthy residents out of the state and leave Maine vulnerable in a downturn. The measure, which passed along party lines, now heads to the full Legislature for debate.

Colorado

Supporters of Colorado measure to raise taxes on higher earners begin collecting signatures for 2026 ballot – Aspen Times

Supporters of a proposed 2026 Colorado ballot measure have begun collecting signatures for an initiative that would replace the state’s 4.4% flat income tax with a graduated system that lowers taxes for most residents while raising rates on those earning over $500,000. The plan, backed by a coalition of 19 advocacy groups and led by former state representative Chris deGruy Kennedy, aims to generate about $2 billion annually for education, health care, and child care while allowing the state to retain the new revenue above the Taxpayer’s Bill of Rights (TABOR) limit. Conservative and libertarian groups oppose the proposal, arguing that Colorado’s low flat tax attracts businesses and high earners. Supporters say that a tiered tax is necessary to address the state’s $850 million budget shortfall and preserve critical public services strained by federal cuts.

Vermont

Lawmakers propose new tax targeting wealthiest Vermonters – Vermont WCAX

Last week, Vermont Democrats made a push Thursday to add two new income tax brackets on earners above $500,000 and $1 million, aiming to offset federal cuts and address over $250 million in new funding requests for the state’s $9.3 billion budget. The proposal was attached to a miscellaneous tax bill but paused by House leaders for further Ways and Means Committee review. House Speaker Jill Krowinski stressed careful, strategic spending to support all Vermonters, while Gov. Phil Scott is expected to veto any such wealth tax over fears of wealthy outmigration.

Other

Jamie Dimon Puzzled By ‘Fair Share’ In Bernie’s Billionaire Tax Plan; Sanders Says ‘Let Me Clear Things Up For You – Benzinga

In an interview with Fox and Friends, JPMorgan CEO Jamie Dimon pushed back on Sen. Bernie Sanders’ (I-VT) billionaire tax message, saying he does not understand what “fair share” means and arguing that simply raising taxes does not fix the deeper policy problems facing Americans. He said the focus should be on pro-growth reforms, better use of government funds, and bigger income tax credits for lower earners rather than wealth taxes on billionaires. Sanders pushed back on X, defending his wealth tax proposal.

The High-Tax Wealth Flight Continues – WSJ

The Wall Street Journal Editorial Board argued that new IRS data show wealthy taxpayers continue to leave high-tax states for lower-tax ones, undermining Democratic proposals to raise income taxes. Between 2022 and 2023, states like California, New York, and Illinois lost tens of billions in adjusted gross income, while states with no income tax, such as Florida, Texas, and Tennessee, gained large inflows. The Board linked these trends to progressive tax structures that burden high earners and businesses, warning that states heavily dependent on top-income taxpayers risk fiscal instability during market downturns. Citing examples like Massachusetts and Washington state, which recently enacted new surtaxes on wealthy residents, the Board concluded that higher taxes drive both people and capital toward states with friendlier tax climates and stronger job growth.

Labour’s tax chaos driving wealthy abroad – The Telegraph

A new survey from BDO, a tax advisory firm, suggests Britain’s ultra-wealthy are increasingly considering leaving the UK. The poll found that tax policy and government reversals were a bigger driver than high tax rates themselves, as concerns over inheritance tax and possible capital gains tax changes are causing discontent with the Labour Party’s approach. The survey said this is caused by the ongoing millionaire departures that has already included major figures in finance, shipping, and property moving to places like Dubai, Monaco, and Milan. Critics argue the policy shifts are pushing capital and business activity out of the UK without a clear replacement strategy.

America’s Money Migration: Democratic States Keep Losing Taxpayer Income – Opinion: Potomac Watch – WSJ Podcasts

In a WSJ Opinion podcast called Potomac Watch, hosts Kyle Peterson, Allysia Finley, and Collin Levy analyze IRS data from 2022-2023 showing continued outmigration of adjusted gross income from high-tax blue states like New York, California, Illinois, and Massachusetts to low-tax states like Florida, Texas, Nevada, and no-income-tax states such as New Hampshire, Wyoming, and South Dakota. They highlight how top 1% earners in New York fund 46% of state income taxes, with similar concentration in California, making budgets volatile amid stock market fluctuations and past deficits. Yet blue states persist with surtaxes like Washington’s new 9.9% millionaire tax and California’s proposed wealth tax, which has already caused billionaires to flee despite Gov. Newsom’s opposition. Their discussion also focuses on a growing divide, with red states phasing out income taxes while blue states risk scaring off wealthy individuals.

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.

#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #incometaxrates #repealestatetax #FamilyOffice #SuccessfulFamilies @PolicyAndTaxationGroup @DitchTheEstateTax #PolicyAndTaxationGroup #DitchTheEstateTax #FamilyEnterpriseUSAAction