It’s clearer than ever that the effects of the national rise in economic inequality are spilling over into local communities. With the federal government lacking the necessary urgency to respond to and address the crisis, states are taking matters into their own hands and proposing their own millionaire taxes. From coast to coast, officials have proposed all sorts of measures to raise the wealthy’s tax bills. They would go a long way to reduce inequality, require the wealthy to (finally!) pay their fair share, and ensure that state governments get the funds they need to keep critical services alive.
Unmitigated economic inequality is creating two separate realities: one for the super rich and one for everyone else. Consider how yesterday The New York Times published an article detailing how the ultra-rich are falling all over each other to buy up a limited number of luxury properties around Miami Beach. Billionaires like Mark Zuckerberg, Larry Page, Jeff Bezos, and Sergey Brin are offering unimaginable sums to buy sprawling properties replete with tennis courts, AI-controlled bathroom windows, infinity pools, gated bridges, private police forces, and more. Meanwhile, the rest of Miami struggles with a stagnant housing market, with prices dropping and listings sitting on the market for months on end. For the super rich, there are no restraints on what their money can and will buy them. For everyone else, it’s a fight for survival.
Earlier this week, two of our members, Scott Ellis and Margot Snowdon, were quoted in another piece in The New York Times, speaking to the harms that we all suffer, rich and poor alike, amidst rising inequality. The article detailed the ultra-rich takeover unfolding on the other side of the country in Teton County, Wyoming. The county is the richest in the country and has the highest level of inequality—the top 1% of residents have an estimated annual income of $35 million, which is 221 times more than the average income of the bottom 99% in the county. As the ultra-wealthy have continued to get involved in the county’s local politics, they have made life increasingly unaffordable for residents and eroded their quality of life, in areas like education, policing, road maintenance, healthcare, and more.
For this week’s Closer Look, we want to give you a rundown of these proposals. We’ll close by spotlighting the success of other recent state-level tax initiatives and sharing some broader reflections about what this all means for the fight against inequality. While as an organization, we generally do not support tax increases on anyone making less than $1 million per year in income, it’s nonetheless important that states begin having these conversations and citizens are informed about the actions being taken at the state level to challenge economic inequality.
New York
Following the historic election of New York City Mayor Zohran Mamdani, state officials are facing an unprecedented amount of public pressure to tax the rich.
Last week, nearly 2,000 activists traveled to Albany to call on Governor Kathy Hochul and state legislators to tax the wealthy and corporations in order to fund public services like childcare, healthcare, and food assistance. Specifically, they called for the passage of three bills: the “Progressive State Income Tax Bill,” the “Fair Share Act,” and the “Tax on the Most Profitable Corporations.”
Prior to this, Mayor Mamdani announced that the city is facing a $5.4 billion budget gap for the next two years. In order to raise revenue to close this gap, he offered two proposals for the city. His preference is to work with the state government to raise income taxes on the top 1% of people in New York state who earn over $1 million annually. But if Governor Hochul continues to oppose raising income taxes, as a “last resort,” he has proposed raising the average citywide property tax rate from 12.28% to 13.45%, which would disproportionately affect middle- and working-class homeowners.
Our New York members have been out in full force in recent weeks in support of the state’s momentum to tax the rich. Our Chair, Morris Pearl, wrote an op-ed that ran in The Indypendent and was quoted in a piece by City Limits; Andy Tobias sat for a radio interview with The Indypendent News Hour; and Marc Baum gave a TV interview to Spectrum News NY1.
California
A few weeks ago, we told you all about the ballot initiative, the “2026 Billionaire Tax Act,” making waves in the Golden State. If passed, the Act would establish a one-time, 5% emergency tax on the net worth of the roughly 200 billionaires living in California as of January 1, 2026. Revenues raised would be primarily directed to healthcare.
Our members have made quite a lot of noise about the proposal in the media, including in outlets like Fortune, 48 Hills, Business Insider, Forbes, Deseret News, and The Hill.
There is another ballot measure in California that’s getting less attention than the wealth tax proposal but is no less important to know about. The “California Renew State Income Tax Increase for Education Funding Initiative” would make permanent the higher income tax rates which voters approved in 2012 that are scheduled to expire in 2031. Rate hikes apply to income over $360,000 ($721,000 for joint filers) and funds are primarily directed to education.
Washington (the state, not the district)
Washington lawmakers are currently considering a “Millionaires Tax,” which would levy a 9.9% tax on income above $1 million. Roughly 20,000 households would be liable for the tax and revenues would be directed to public education, early learning and childcare, healthcare, public defense and safety, and a number of targeted tax cuts to working Washingtonians and small businesses.
If it passes, this would be a huge deal for Washington. It is one of only nine states in the country that doesn’t have an income tax, and has the second most regressive state and local tax system in the country.
One of our Washington members, Victoria Hattersley, filmed a video for social media about the Millionaires Tax, which you can view here.
Michigan
A new ballot initiative, “Invest in MI Kids,” asks voters to approve a constitutional amendment that would enact a 5% income tax surcharge on individuals making over $500,000 (or over $1 million for joint filers). Revenues raised would be directed to Michigan public schools.
Connecticut
Last year, State Senator Martin Looney (11th district) said he would reintroduce a previously failed bill which would enact a 1.75% surcharge on capital gains for individuals with income over $1 million ($2 million for joint filers). He also announced that he would introduce a “mansion tax” on residential properties with values above $3 million.
Pennsylvania
In October 2025, twenty Pennsylvania lawmakers released the “Tax Billionaires, Fund PA” plan. This package of bills would raise $4 billion in new tax revenue by: closing corporate tax loopholes, enacting a digital advertising tax, and establishing a tax on the passive income of billionaires.
Virginia
Virginia has a few tax-the-rich bills in the works. State Representative Vivian Watts (14th district) introduced HB 979, which would establish two new tax brackets—an 8% tax on income between $600,000 and $1 million and a 10% tax on income over $1 million—with funds raised directed to public schools. State Representative Elizabeth Bennett-Parker (5th district) introduced HB 378, which would enact a 3.8% tax on net investment income, e.g. capital gains, dividends, and interest.
Illinois
Last month, State Representative La Shawn K. Ford (8th district) introduced a constitutional amendment, Illinois House Joint Resolution Constitutional Amendment 26, which would enact a 3% surtax on income over $1 million. It would exist alongside the state’s 4.95% flat income tax rate and revenues would be directed to property tax relief.
In October, Representatives Kam Buckner (26th district) and Eva-Dina Delgado (3rd district) also introduced a bill which would tax the unrealized capital gains of billionaires at a 4.95% rate, which would align with the state’s income tax rate.
Rhode Island
In his 2027 budget, Governor Dan McKee proposed a 3% surtax on state income over $1 million, which would raise the top rate to 8.99% and would affect 2,300 Rhode Island millionaires and 5,500 nonresidents.
In January, a number of representatives unveiled the “Fair Share for Rhode Island package,” which consists of four bills. They would: enact an extra 3% surcharge on income over $640,000; a 1% tax on financial assets worth over $25 million; a 4% tax on passive income, e.g. capital gains and dividends; and a tax on local advertising from global companies worth over $1 million.
Hawaii
Last year, State Senator Karl Rhoads (13th district) introduced a bill that would enact a 1% tax on the net assets of individuals worth over $20 million. In January, State Representative Kim Coco Iwamoto (25th district) introduced a separate bill that would establish a 3% surtax on individuals with income over $500,000 (or couples with income over $1 million), with revenues directed to public transit and education.
Conclusion
This new wave of state-level proposals to tax the rich has been growing in height for some time now. In 2022, Massachusetts instituted a 4% surtax on income over $1 million and Washington created a 7% tax on capital gains above $250,000. In 2023, Minnesota enacted a 1% tax on net investment income over $1 million. In 2025, Maryland passed legislation that established two new tax brackets and created a 2% surcharge on capital gains for individuals making over $350,000.
The success of these proposals should inspire lawmakers to proactively address economic inequality, especially when many states are not on the tax-the-rich train yet. People all around the country are waking up to how large the gap is between the rich and everyone else, and are (rightfully!) demanding that their lawmakers do something about it to protect their communities.
Whether it’s Miami Beach or Teton County or somewhere in between, the ultra-rich are making life worse for everyone else on account of their excesses. But in the end, no matter where Mark Zuckerberg or Jeff Bezos decide to plant their roots, we all suffer when too much wealth and power are held in the hands of too few. That’s why it’s important for lawmakers at every level of government—at the state level, but also at the federal and local levels too—to work together to ensure the wealthy pay what they owe in taxes.