Lawmakers in nine states are proposing higher taxes on the wealthy to help fill growing budget holes from the coronavirus pandemic, and the list is likely to grow, according to a legislative group.
After New Jersey passed its “millionaire’s tax” — raising the income tax rate for those making $1 million or more — legislators in New York, California, Massachusetts, Maryland and other states renewed their efforts to hike taxes on high earners.
While some of the efforts may fail, states with multibillion-dollar revenue shortfalls are increasingly looking to high earners to pay for more of the costs of the pandemic and make up for lost revenue.
Democratic lawmakers argue that the wealthy — who have largely escaped the economic hardship of the pandemic — should pay more of the costs and help those who have suffered most. Republicans and some Democratic governors say tax hikes at the state level will only cause the wealthy to move to lower-tax states like Florida or Texas.