While ultrawealthy Americans are unlikely to face any extra federal taxes any time soon due to the makeup of Congress, legislators in at least 10 U.S. states this year are aiming to pass tax policies targeting their richest residents to raise revenue for the common good.
Lawmakers in California, Connecticut, Hawaii, Illinois, Maryland, New York, and Washington introduced coordinated wealth tax bills a year ago. Some were inspired by U.S. Sen. Elizabeth Warren’s (D-Mass.) 2020 presidential campaign proposal , which featured a 2% annual tax for assets above $50 million and a 3% tax for assets over $1 billion.
Now, less than a month into 2024, legislators in 10 states are developing or have introduced wealth tax bills. Amber Wallin of the State Revenue Alliance confirmed to The New York Times on Tuesday that all of the states that were working on such legislation last year, except Illinois, have been joined by Minnesota, Nevada, Pennsylvania, and Vermont.
“A new wealth tax in Massachusetts last year that was expected to raise $1 billion actually raised $1.5 billion, helping to fund green infrastructure, education, and childcare.”