Wealth Tax News – 5/22/2026

This week’s wealth tax developments reflect continuing debate across California, Connecticut, Washington, New York City, and beyond, with supporters framing new taxes as a response to inequality and public-funding pressures while critics warn about migration, competitiveness, and legal risk.

The conversation also featured a notable split among political and business leaders, as figures such as Tom Steyer and Jensen Huang expressed openness to higher taxes on the ultrawealthy, while voices including Matt Mahan, Christine Gregoire, Jamie Dimon, Jeff Bezos, and Jonathan Turley argued that wealth-tax proposals could undermine growth, investment, or broader public confidence.

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

Federal

Tax Subcommittee Hearing on Your Paycheck, Returned: How the Working Families Tax Cuts Delivered for Americans – House Ways and Means Committee (2:28:00)
During Wednesday’s hearing with the House Ways and Means Tax Subcommittee, Rep. Don Beyer (D-VA) spoke on his legislation (introduced with Sen. Chris Van Hollen (D-MD)) as a contrast to recent estate tax cuts, arguing that Republicans preserved roughly $200 billion in tax breaks benefiting a small number of wealthy heirs. He criticized the current estate tax structure, particularly provisions like the step-up in basis, for allowing inherited wealth to go largely untaxed. Rep. Beyer framed these policies as contributing to rising wealth concentration and federal debt, arguing that prioritizing tax relief for working- and middle-class families over inherited wealth would better address economic strain and long-term inequality.

Rep. Ro Khanna on U.S.-China relations, Taiwan concerns and wealth tax push – CNBC (6:12-7:02)
Rep. Ro Khanna (D-CA) briefly discussed the wealth tax at his commencement speech at Suffolk University earlier this week and he highlighted support from young people regarding taxes on billionaires. Rep. Khanna agreed with Joe Kernan (CNBC) that billionaires create value, but posed the question if it would be “the worst thing in the world” if billionaire had to pay “a few percent to tax.”

California

Tom Steyer Wants to Save California From Billionaires. But Also Doesn’t Want Them to Leave – WIRED
California gubernatorial candidate Tom Steyer (D) supports California’s wealth tax proposal, which has prompted wealthy residents like Sergey Brin and Peter Thiel to leave (or threaten to leave) the state. He argues it “doesn’t go far enough” because it’s a one-time tax that doesn’t specifically fund education. Steyer frames his position as balancing California’s role as an innovation hub with addressing extreme inequality, arguing that while he wants billionaires to come and build world-changing companies, they must pay their fair share and contribute to “shared prosperity” rather than extracting wealth from the state’s ecosystem without supporting teachers, nurses, and other essential workers.

A ‘tax-the-rich’ billionaire candidate? Democrats are intrigued – The Guardian
Tom Steyer, a billionaire running for California governor, is campaigning on taxing the ultrawealthy and addressing affordability, positioning himself as a “class traitor” willing to challenge fellow billionaires. While some progressives remain skeptical, others are willing to support him as aligned with their goals, even as concerns persist over whether a billionaire can credibly lead a movement to tax the rich.

California gubernatorial candidate Matt Mahan outlines his priorities for Golden State – AOL
In a recent interview with KTLA, Mahan pushed back on proposals for a billionaire’s tax. He argued that such policies often fail because wealthy individuals can relocate to avoid them—a pattern he says has played out in several European countries that later repealed similar taxes. He warned that the unintended consequence is a greater burden on middle-class taxpayers. While skeptical of a wealth tax, Mahan acknowledged that addressing inequality through the tax code remains important, suggesting that raising capital gains rates could be a more effective alternative.

Tech leaders funding Matt Mahan’s campaign for California governor say it’s not about tech – Los Angeles Times
San José Mayor Matt Mahan’s gubernatorial campaign has been fueled by significant financial backing from Silicon Valley entrepreneurs, prompting criticism that he may be aligned with Big Tech interests. Mahan and his donors reject that claim, arguing their support is based on his centrist, results-oriented approach to issues like housing, homelessness, education, and public safety—not tech favoritism. Sergey Brin, the co-founder of Google, also donated the maximum amount to Mahan directly.

California’s billionaire tax proposal raises eyebrows – Deseret News
California’s proposed wealth tax has sparked debate over whether it will help or hurt the state’s economy. Supporters, led by the Service Employees International Union-United Healthcare Workers West, argue the proposal would raise $100 billion. However, critics warn the retroactive tax is likely unconstitutional and has already prompted high-profile billionaires to leave California, potentially costing the state $24.7 billion in lost tax revenue over time, exceeding any gains from a potential wealth tax. Opponents argue the proposal doesn’t address California’s underlying spending problems and could accelerate the exodus of wealthy residents to no-income-tax states like Texas and Florida.

Connecticut

State Rep. Josh Elliott proposes changes to tax structure as race for Connecticut governor continues – News 8
Connecticut state Rep. Josh Elliott, who is challenging Gov. Ned Lamont in a Democratic primary for governor, is proposing to implement a 4% surtax on individuals earning $1 million or more, modeled after Massachusetts’ approach. Elliott plans to direct the revenue from this “millionaire tax” to municipalities to ensure education quality is not dependent on zip code.

Washington

Former Washington Gov. Christine Gregoire rips fellow Democrats for pushing millionaires out – NY Post
Former Washington Gov. Christine Gregoire (D), criticized her party’s state legislators for passing a millionaires’ tax. She warned that they failed to understand the economic consequences as wealthy residents flee the state, taking with them capital gains tax revenue and philanthropic contributions.

GOP targets millionaire tax via state High Court elections; ‘extraordinary year,’ chair says – King 5; Big money pours into Washington Supreme Court races amid millionaires tax debate – KOMO News
Washington state Republicans are targeting state Supreme Court elections as battles over the recently enacted millionaires’ tax and other major policy issues. GOP Chairman Jim Walsh called it “an extraordinary year” as five of nine Supreme Court seats are up for election in November. The GOP informally endorsed two judicial candidates, retired Federal Way Municipal Court Judge Dave Larson and Mason County Superior Court Judge David Stevens. Democrats emphasized the court will decide “crucial issues” including tax reform, environmental regulations, and healthcare, with several races drawing hundreds of thousands of dollars in campaign contributions despite being officially nonpartisan.

New York City

Mamdani’s Tax Plans May Hurt New York, JPMorgan’s Dimon Says- Bloomberg Law
JPMorgan CEO Jamie Dimon criticized New York Mayor Zohran Mamdani’s proposed tax increases on wealthy residents. He warned that they could undermine the city’s competitiveness as a business hub and accelerate the loss of talent and companies to lower-tax states like Texas. While acknowledging some of Mamdani’s policy goals, such as improving affordability, Dimon argued that anti-business rhetoric and high taxes risk driving employers and workers away, citing shifts in JPMorgan’s own workforce.

Other

Bezos defends billionaires, hypes AI, talks taxes and praises Trump – CNBC
Jeff Bezos said the bottom half of U.S. earners should pay zero federal income tax. He framed the policy as a way to relieve financial pressure on working households, saying it “makes no sense” to tax moderate-income workers like a $75,000-earning nurse. He also said that increasing his (or other billionaires’) income tax rates would not help lower-income households. He argued that while he already pays billions in taxes, raising those taxes would not solve the underlying problem.

The billionaires telling other billionaires to shut up and pay their taxes – CNN Business
Nvidia CEO Jensen Huang, worth an estimated $200 billion, publicly supported California’s proposed wealth tax, saying “it’s fine” and that paying taxes is a way of giving back, contrasting sharply with fellow billionaires like Sergey Brin and Peter Thiel who are spending millions to oppose the measure. The division among the ultra-wealthy reflects political and generational fault lines, with older billionaires like Warren Buffett and Bill Gates viewing high taxes as civic duty, while younger libertarian-leaning tech entrepreneurs question government effectiveness and prefer to allocate their own wealth.

Democrats’ wealth taxes are Trojan horses: Beware what lies inside – AOL
Jonathan Turley argues that Democratic wealth tax proposals in California and other states are “Trojan horses” that will eventually extend beyond billionaires to target broader segments of the population. Turley warns that California’s proposal has already cost the state significantly as wealthy residents have relocated to states like Texas and Florida.

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