Wealth Tax News – 2/13/2026

Coverage of wealth taxes this week frames California’s wealth tax push as both a healthcare-funding response and a broader ideological fight over causes and consequences-from claims that inflation and long-run dollar devaluation fuel resentment toward billionaires to warnings that wealth taxes risk capital flight, hard-to-value assets, and low, unstable yields seen abroad. We’re seeing more reports highlighting relocation planning and luxury real estate buys by some wealthy Californians alongside advisors urging proactive residency and liquidity planning, even as some business leaders say firms and talent largely remain and a few high-profile billionaires express willingness to pay. Beyond California.

legislative activity is widening. Washington’s millionaire tax advanced amid Democratic splits, Illinois introduced a tax on unrealized gains above $1 billion, and a New York City proposal would raise top personal and corporate rates. Some opinion articles argue that durable solutions likely lie in federal reforms to capital gains and inheritance rules rather than state-level wealth taxes.

Please find summaries of relevant articles with web links below. Full articles are attached. Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.

California

California’s Proposed Wealth Tax Is A Result Of The Dollar’s Devaluation – Forbes
Steve Forbes explains that California’s proposed wealth tax is one result of America’s long-term dollar destruction since abandoning the gold standard in the early 1970s. Forbes argues that this has caused steady currency devaluation, inflation, and eroded social trust over decades. He also describes how this fuels anger toward billionaires who appear to grow richer through speculation and financial manipulation, while millions deal with increasing costs. Forbes advocates for stabilizing the dollar alongside tax cuts and deregulation as a solution to disincentivize wealth tax proposals.

Contributor: What’s behind these wild new wealth-tax proposals? – Los Angeles Times
Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University, argues that emerging U.S. wealth tax proposals—like the proposals in California, Illinois, New York City’s, and others—stem from politicians dodging spending restraint by targeting a mobile rich minority, despite high earners already bearing disproportionate burdens. She warns that these taxes damage economies through capital flight, illiquid asset sales, and reduced investment leading to slower productivity and wages. She cites Europe’s repealed wealth taxes that proved low revenue, high avoidance, and instability. Rugy argues that actual solutions include controlling spending growth, broadening bases, and pro-investment policies.

Union push spotlights fights over California wealth tax | Sacramento Bee
SEIU-UHW President Dave Regan is leading California’s wealth tax ballot initiative to raise $100 billion over five years, offsetting a $20 billion annual shortfall in healthcare funding from Congress’ One Big Beautiful Bill. Despite opposition from Gov. Newsom and Silicon Valley leaders, supporters including the Teamsters, Sen. Bernie Sanders (I-VT), and gubernatorial candidates view it as essential to avert hospital closures. Regan’s history includes using ballot threats to extract legislative wins, and he has faced several accusations of aggressive conduct since he assumed leadership of the SEIU-UHW.

Rich Californians Fleeing Wealth Tax Snap Up Florida Real Estate – Bloomberg Tax
Miami real estate brokers are reporting a surge of wealthy Californians—many seeking “trophy” properties to dodge the proposed wealth tax. Individuals include Larry Page, Sergey Brin and most recently, Mark Zuckerberg. While companies and talent pools are largely staying in California, brokers note that some clients have prioritized quick residency through turn-key homes. Many wealthy residents have already left California and many more are considering leaving due to the state’s other progressive policies.

Billionaire tax author argues for its fairness, necessity – San Francisco Examiner
Brian Galle, one of the author’s of California’s proposed wealth tax initiative, argues the tax is a fair response to a $100 billion state budget hole from federal OBBBA cuts to healthcare and food aid. Galle dismisses billionaire departure fears as overblown, citing the California Legislative Analyst’s Office estimate of tens of billions in net revenue and evidence that threats to leave rarely materialize. Galle views the tax as economically negligible for its targets yet vital for fairness, countering critics like Gov. Newsom and recent “March for Billionaires” protesters.

Sen. Bernie Sanders to headline LA rally for billionaires tax proposal – Los Angeles Daily News
Sen. Bernie Sanders (I-VT) will headline a rally in Los Angeles on Feb. 18 to kick off the campaign for California’s proposed wealth tax initiative. Sen. Sanders has criticized the top 1% owning more than the bottom 93% and plans a national wealth tax. During his California visit, Sen. Sanders will also meet privately with AI leaders and hold a town hall with Rep. Ro Khanna to address AI’s job threats.

Proposed California ‘wealth tax’ may backfire on liberal politicians – Washington Examiner
California’s proposed wealth tax ballot initiative is generating different responses from ultra-wealthy individuals, some of whom have said they are fine to absorb the tax such (i.e., Nvidia CEO Jensen Huang), while others like Larry Page of Google plan to relocate assets or themselves to states like Texas or Florida. Critics of the proposed tax include Gov. Gavin Newsom (D) and San Jose Mayor Matt Mahan (D), warn it risks high-paying tech jobs, economic opportunity, and over-reliance on ~200 deep pockets to fix foundational state problems. Supporters like Rep. Ro Khanna downplay exodus fears, but actions by figures like David Sacks suggest otherwise.

Wealthy Washington, California residents moving to valley, agents say – Las Vegas Review Journal
Wealthy individuals from California and Washington are rushing to Las Vegas Valley, especially Henderson, Nevada, as a “full-scale migration of wealth,” escaping California’s and Washington’s proposed billionaire and millionaire taxes. Real estate agents note that high-net-worth buyers, like retiring tech executives, are leaving to buy Nevada real estate at half the price with no state income tax. Redfin and U-Haul data confirm that individuals from Los Angeles, Seattle, and San Francisco are among the top areas of inflows while they begin prioritizing tax predictability and lifestyle value.

Advisors weigh ripple effects of California billionaire tax | Accounting Today
Wealth advisors are counseling high-net-worth clients on California’s ballot initiative, sparking “ripple effects” where even centimillionaires fear future targeting. These effects have prompted individuals to reconsider their residency despite skepticism over its passage amid Gov. Newsom’s opposition and expected legal challenges. They stress proactive long-term planning over reactive moves, given wealth taxes’ higher burden than income taxes and their potential spread to other areas of the country if the California’s proposal survives legal battles.

Washington

WA income tax on higher earners clears first legislative hurdle – Washington State Standard
On Tuesday, the Senate Ways and Means Committee in the Washington state legislature advanced Senate Bill 6346, the “millionaires’ tax” proposal that would impose a 9.9% income tax on household income above $1 million. The committee amended the bill to direct a share of revenues to expand the Working Families Tax Credit and boost funding for local public defense and small‑business tax relief. Republicans remain uniformly opposed and warn it could eventually broaden to taxpayers below the $1 million threshold. The bill is now headed to sending it to the Senate Rules Committee for potential floor action.

Washington wealth tax ignites battle among Democrats – Bond Buyer
Gov. Bob Ferguson (D) withheld support for SB 6346, which would create a 9.9% income tax for Washingtonians who make more than $1 million per year, demanding far more revenue return to middle/lower-income residents through sales exemptions, small business relief, or other mechanisms.​Democrats were surprised by his opposition, noting that the bill is not yet in final form. Republicans described the tax as a slippery slope ending 99 years without an income tax in Washington.

Millionaire Tax Tests a State’s 93-Year Aversion to Income Levy – Bloomberg Law
Washington State Democrats are about to pass Senate Bill 6346 potentially within the session’s final 28 days. Supporters say it is overdue, while business leaders like the Washington Roundtable and WA state Rep. Amy Walen (D) warn it erodes the state’s competitive edge for entrepreneurs behind Microsoft, Amazon, and others, risking investment flight despite population gains. The bill has revived failed attempts, and Democrats are betting on a friendlier state Supreme Court and public support despite 60,000+ testimonies against.

Illinois

‘Billionaire wealth tax’ is among newly proposed Illinois legislation – The State Journal Register

Last week, Illinois lawmakers filed Senate Bill 3376, introducing a “billionaire wealth tax.” The proposal would apply the state’s personal income tax to unrealized asset appreciation for residents with net assets over $1 billion. The proposal has been backed by the Illinois Revenue Alliance as part of a series of initiatives that they plan to introduce to modernize the state tax code.

New York City

Mamdani proposes tax rise for wealthy New Yorkers – Newsweek

New York City Mayor Zohran Mamdani (D) has proposed a 2% personal income tax hike on wealthy residents earning over $1 million, in addition to a corporate tax increase, to close nearly half of the city’s $7 billion budget deficit (down from a projected $12.6 billion. Mayor Mamdani says that millionaires can afford $20,000 more annually amid federal tax cuts from the OBBBA. With around 380,000 millionaires in NYC, Mamdani said his proposal is a “direct route” out of a crisis inherited from ex-Mayor Eric Adams. Gov. Kathy Hochul (D) has historically opposed such tax hikes.

Other

How to Tax the Billionaires: Cutting Through the Policy Hysteria – Bloomberg Law
In an essay, Brad Stone explains that California’s wealth tax initiative is meant to plug a $150 billion healthcare gap from federal OBBBA cuts. Amid soaring U.S. wealth inequality (top 400 families’ assets at 20% of GDP vs. 2% in 1982), supporters frame it as essential redistribution, while critics highlight mobility risks and administrative difficulties. Stone says that academics favor federal tax reforms over state wealth taxes, such as treating investment gains as regular income, taxing unrealized capital gains at death, and imposing robust inheritance taxes to discourage successional wealth. These measures align with progressive ideals by curbing perpetual holding of assets for tax avoidance but likely remain politically challenging.

 State Tax Trends to Watch in 2026 – Tax Foundation
The Tax Foundation analyzed state tax trends to watch and included taxes on wealth and high earners as one of the 4 issues addressed. The article highlights proposals being introduced, such as Washington and California, and notes that many states do not have yearlong legislative sessions. Due to this shortened timeline to consider legislation, there is often little debate on legislation that could affect the state’s economic appeal in the long term.

Week in Insights: US Could Learn About Wealth Taxes From Sweden – Bloomberg Law
Sweden scrapped its wealth tax in 2006, alongside repealing inheritance taxes the prior year, which resulted in a surge in per-capita billionaires but rising inequality. Sweden offers the U.S. a cautionary example that wealth taxation shapes not just economics but civic expectations and belonging. U.S. debates obsess over rates and enforcement, yet Sweden’s history shows deeper societal architecture may be at stake.

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