September 28, 2020
Legislators in nine states—among them, New York, California, Massachusetts, and Maryland—have renewed their efforts to hike taxes on high earners. The states are facing multibillion-dollar revenue shortfalls, due to the costs of the coronavirus pandemic; as well as lost revenue from shuttered businesses.
Indeed, Democratic lawmakers are arguing that the wealthy—who have largely have escaped the economic hardships of the pandemic—should pay more of the costs and help those who have suffered most, reports CNBC.
However, Republicans and some Democratic governors say tax hikes at the state level will only cause the wealthy to move to lower-tax states, such as Florida and Texas.
After New Jersey passed its “millionaire’s tax” last September— under which state residents who earn more than $1million per year will face higher income taxes, while 800,000 lower-income families will get a tax rebate—legislators in other states renewed similar efforts with greater vigor.
Along with New York, lawmakers in California, Illinois, Massachusetts, Maryland, Wisconsin, Hawaii, Oklahoma, Vermont have proposed various forms of tax increases on high earners, according to the National Conference of State Legislatures.
Those states account for more than one-third of the U.S. population, and nearly half of the nation’s millionaires, according to population data and wealth surveys.
Research contact: @CNBC