Overview
- More than 45 Democrats in Congress back a federal net-worth tax on fortunes above $50 million that sponsors estimate would raise about $6.2 trillion over 10 years.
- Sen. Bernie Sanders proposed a 5% yearly tax on the nation’s 938 billionaires with revenue set aside in part for $3,000 payments to households earning $150,000 or less.
- Washington state enacted a 9.9% tax on income over $1 million to fund free school meals, child care and larger tax credits for lower-income families.
- California supporters are collecting signatures for a one-time 5% tax on the net worth of state billionaires, and Gov. Gavin Newsom has voiced caution about the plan.
- Critics warn these taxes can spur avoidance and moves, pointing to a reported $4.2 billion net income loss in Massachusetts after its surtax and Howard Schultz’s move from Washington to Florida.