Wealth Tax News – 6/12/2026

This week’s wealth tax developments span coast to coast and across the Atlantic: California’s proposed billionaire tax faces mounting opposition from an unlikely coalition of labor unions, business groups, and medical interests as it heads toward the November ballot, while Rhode Island’s legislature sent a phased millionaire tax to the governor’s desk and Washington State’s 9.9% levy is already prompting high-earner departures two years before collections begin.

Meanwhile, Hawaii joined the race to the top of state income tax rates, and a new Bloomberg Economics analysis warns that UK wealth tax proposals risk undermining growth for little additional revenue—underscoring the global tension between taxing the wealthy and retaining the tax base.

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.

California

California Teachers Association votes to oppose billionaire tax – POLITICO
The California Teachers Association has voted to oppose the proposed California wealth tax. The union says that, after internal debate, it concluded the measure would not provide sustainable, long-term funding for schools and communities, and joins other liberal and health-sector groups that have recently announced opposition.

Master strategists weigh in on California wealth tax – Sacramento Bee
The California wealth tax has garnered opposition from an unusual coalition of business groups, medical interests, and some Democrats. Strategists argue that despite support from labor groups like SEIU-UHW—who frame the tax as a way to fund struggling hospitals—the measure faces significant headwinds, including well-funded opposition campaigns, competing ballot initiatives, and voter fatigue.

Billionaire tax sparks war as California union opposes – New York Post
An increasing split within California’s labor movement over the wealth tax is growing. The State Building and Construction Trades Council, led by Chris Hannan, has come out against the measure, warning that a retroactive billionaire tax would drive wealthy investors and their capital out of the state, jeopardizing large construction projects and associated union jobs.

Rhode Island

FY27 budget heads to Gov. McKee’s desk after Senate approval – Rhode Island Current
Rhode Island’s FY2027 budget, which included a phased millionaire tax, passed the state legislature and was sent to Gov. Dan McKee (D). State lawmakers approved a 1% surtax on income over $1 million in FY27, with additional 1% increases in each of the next two years, instead of the single 3% hike McKee initially proposed. Supporters see it as a way to replace shrinking federal funds while balancing revenue needs with concerns about business climate and high‑earner flight. Republicans unsuccessfully pushed multiple amendments to remove or scale back the provision before voting against the budget.

Washington

Is Washington’s Millionaire Tax Already Failing? – WSJ
Washington State’s new 9.9% millionaire tax, scheduled to start in 2028, is already backfiring by encouraging high earners and entrepreneurs to move to no‑income‑tax states such as Nevada and Florida, writes James Freeman in an opinion piece. The author cites recent relocations by prominent business figures and notes that, despite heavy tax burdens and recent code changes, the governor’s budget office is warning of significant upcoming shortfalls while admitting that spending growth is outpacing revenue. The piece also highlights legal and political uncertainty around the tax, with officials instructing agencies not to count on the projected revenue because of court challenges and possible ballot measures, and questions whether any millionaires will remain in Washington by the time collections are slated to begin.

Hawaii

The Tax Collector’s Paradise – WSJ
The Wall Street Journal Editorial Board argues that Hawaii’s recent increase of its top marginal income tax rate from 11% to 13%—applied to single filers earning over $500,000—reflects a broader trend among Democratic-led states raising taxes on high earners. The Board frames the change as part of a “tax contagion,” noting similar increases in states like Washington and Maine and highlighting that many of the highest-tax states are under Democratic control.

Other

Wealth Taxes Risk UK Growth for Little Revenue, Analysis Finds – Bloomberg
New Bloomberg analysis suggests that proposals to increase UK wealth taxes would likely raise only modest additional revenue while risking slower economic growth. Britain already taxes capital and property relatively heavily and higher rates would trigger behavioral responses that erode the base. The analysis notes that asset-related taxes are on track to reach about a tenth of total tax receipts by 2030. Instead of relying on wealth-tax hikes to fund significantly higher public spending, the analysis suggests that structural reforms, like replacing stamp duty with a more efficient land or property levy and overhauling council tax, might improve economic efficiency and shift burdens.