[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”22px|||||” global_colors_info=”{}”][et_pb_row admin_label=”CTA” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_cta title=”Take the 2026 Family-Owned Business Survey” button_url=”https:\/\/familyenterpriseusa.com\/2026-annual-family-business-survey\/?utm_campaign=2026AFOBS&utm_medium=CTA&utm_source=FEUSActa&utm_content=FEUSActa&utm_id=2026AFOBS” button_text=”Contribute your perspective to the 2026 Family-owned Business Survey and help influence policy and support. Start now.” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.5″ _module_preset=”default” header_font_size=”22px” background_color=”#397389″ custom_button=”on” button_bg_color=”#ff0019″ custom_margin=”-17px|||||” custom_padding=”16px||19px|||” hover_enabled=”0″ global_module=”9695″ saved_tabs=”all” global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_5,3_5,1_5″ admin_label=”Author Byline” _builder_version=”4.24.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.brownandstreza.com\/davidkeligian” link_option_url_new_window=”on” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2024\/05\/Team-members-Pat-S.jpg” title_text=”Patricia M. Soldano” _builder_version=”4.25.1″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.25.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
By Patricia M. Soldano<\/a> [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=bPSeDlD0XoU” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_video][et_pb_text admin_label=”1″ _builder_version=”4.27.5″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n <\/p>\n <\/p>\n There were a lot of wins in 2025 for family-owned businesses and successful families.<\/p>\n The passage of H.R. 1 held down the rate on higher personal taxes, it improved the Estate Tax rate, and it made permanent the 199A provision, which helps level the playing field for most family-owned businesses versus lower-taxed corporations.<\/p>\n These wins, and many others, family business owners can be grateful for, but sometimes we take our wins for granted, rest too fast, and are surprised when new issues seemingly come out of nowhere.<\/p>\n Looking ahead to 2026, there are still plenty of red flags family-owned businesses and successful families need to be aware of, and to start thinking about.<\/p>\n The greatest of these red flags are the many discussions, proposals, and ballot measures now focused on a \u201cWealth Tax,\u201d which could be the most harmful tax of all.<\/p>\n It\u2019s both a state-by-state issue and a federal issue.<\/p>\n This year, a Senate proposal, S.2845, entitled the “Billionaires Income Tax Act,” was introduced by Sen. Ron Wyden (D-OR) and a House companion bill, H.R. 5427, was introduced by Congressmen Steve Cohen (D-TN) and Don Beyer (D-VA).<\/p>\n The two “mark-to-market” proposals are aimed at taxing annually unrealized gains on tradable assets, like stocks, while assets like real estate would be paid upon the sale of the asset. The bills also propose to subject increases in a family business\u2019s asset value to the Wealth Tax.<\/p>\n When introduced, the Senate bill had over 21 co-sponsors. The House bill had 27 co-sponsors.<\/p>\n As for states, no state currently collects a true Wealth Tax on all residents, but several have active proposals, surtaxes, or plans targeting successful families and their businesses.<\/p>\n States like Hawaii, Washington, and California have active or recent proposals, or are having serious discussions, on taxing an individual\u2019s or a family-owned business\u2019s assets or net worth.<\/p>\n Some states, like Minnesota, Maryland, and Connecticut, have opted for targeted changes to income or capital-gains taxes, or \u201cwealth-proceeds\u201d taxes, rather than direct taxes on successful family businesses or families.<\/p>\n Massachusetts enacted a 4% surtax in 2022 on annual income over $1 million.<\/p>\n But because of legal, constitutional, and administrative challenges, many of these proposals have yet to see the light of day. They\u2019re contested, delayed, or are just symbolic political gestures.<\/p>\n Yet is the operative word.<\/p>\n If you live in these states, it\u2019s worth tracking the legislation, proposals, or ballot measures focused on your success.<\/p>\n What to Watch<\/strong><\/p>\n If you have a family-owned business or are a successful family, and a large portion of your income comes from investments or is tied up in real estate or expensive equipment, these new tax proposals are aimed at you.<\/p>\n For now, these measures focus on estate taxes, property taxes, income, and capital-gains, but not on all assets. But, as we know, things can change from election to election.<\/p>\n The good news is a Wealth Tax is hard to administer. Most plans face difficult legal, technical, and political hurdles, including valuation difficulties, enforcement costs, constitutional, and property tax constraints.<\/p>\n What\u2019s easier to legislate is a new, or increased, income tax rate at the high-end of tax brackets.<\/p>\n Most state Wealth Tax proposals tend to use alternative approaches, such as taxing business assets, a family\u2019s net worth, or financial assets above a threshold. They can also tax unrealized capital gains or investment income, or capital-gains.<\/p>\n Because of these hurdles, states often opt for easier wealth proceed taxes like capital gains surcharges, or increased income tax rates, all of which are less sweeping than a full Wealth Tax, but much simpler to pass and manage.<\/p>\n Because of this, no state currently collects a \u201ctrue\u201d Wealth Tax on all residents. But this doesn\u2019t stop proposals or tax plans targeting family-owned businesses and successful families from brewing among lawmakers.<\/p>\n Key State Overview<\/strong><\/p>\n If you\u2019re not aware of these proposals, here\u2019s a quick state-by-state overview of recent proposals or laws in the United States (as of 2025-2026) that either amount to a Wealth Tax or other tax-hikes targeting family-owned business and successful families.<\/p>\n It\u2019s something to put on your radar for the New Year.<\/p>\n California Hawaii Washington Illinois Connecticut Massachusetts<\/strong> Maryland Minnesota<\/strong> New York Other States <\/p>\n [\/et_pb_text][et_pb_divider divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider divider_style=”dotted” disabled_on=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 1″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”5963″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=3k9d1tFz5AU&t=22s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=kG0lDKbmJxg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=HFK8SG1VSco” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=Z15BqbFOYck” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=bsn5xYrxhJg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=PL3K3rK7ioA&t=5s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=CpXRbRBhPKc” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Hash tags & Tags” _builder_version=”4.27.4″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA #FEUSA<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" By Patricia M. Soldano President Family Enterprise USAState \u2018Wealth Tax\u2019 Proposals Take Aim at Family-owned Businesses, Successful Families New Year Brings New \u2018Red Flag\u2019 Issues as States Seek New Revenues\u00a0 There were a lot of wins in 2025 for family-owned businesses and successful families. The passage of H.R. 1 held down the rate […]<\/p>\n","protected":false},"author":2,"featured_media":16036,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,3,92,94],"tags":[],"class_list":["post-16034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-pat-soldano"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/16034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16034"}],"version-history":[{"count":7,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/16034\/revisions"}],"predecessor-version":[{"id":16106,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/16034\/revisions\/16106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/16036"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/strong>President<\/em>
\nFamily Enterprise USA<\/p>\nState \u2018Wealth Tax\u2019 Proposals Take Aim at Family-owned Businesses, Successful Families <\/strong><\/h2>\n
New Year Brings New \u2018Red Flag\u2019 Issues as States Seek New Revenues\u00a0<\/strong><\/em><\/h3>\n
<\/strong>Proposed: The 2026 \u201cBillionaire Tax Act\u201d (ballot initiative) would impose a one-time 5% excise tax on net worth for individuals\/trusts with US$ 1 billion. As of now (Dec 2025), still in the signature-gathering\/qualification phase; not yet enacted.<\/p>\n
<\/strong>Proposed: A wealth-asset tax of 1% tax on net worth for taxpayers with over US$ 20 million in assets. The bill has passed a Senate committee but is not law. Under active consideration: lawmakers have floated proposals for a \u201cwealth tax\u201d on financial assets\/net worth.<\/p>\n
<\/strong>The state\u2019s Department of Revenue published a \u201cWealth Tax Study Report\u201d in 2024 studying how such a tax might work. Because of constitutional\/property-tax limitations, implementing a true net-worth tax would face legal\/administrative challenges. As of now: no wealth tax law enacted. <\/p>\n
<\/strong>Proposal history: In 2023-2024, bills were introduced to tax wealth\/financial assets, e.g., proposals for mark-to-market taxes on unrealized gains or annual asset-based levies. Also: a non-binding referendum approved in November 2024 to allow a \u201cmillionaire tax\u201d (i.e., making the income tax structure more progressive rather than flat). As of late 2025: no comprehensive, enacted net-worth wealth tax.<\/p>\n
<\/strong>Proposed: In 2023, lawmakers introduced bills aimed at increasing taxes on wealthy residents, e.g., raising marginal income tax rates, increasing capital-gains tax, property-value surcharges, and other tax reforms for high-income\/wealthy households. As of 2025: none of these have resulted in a statewide recurring wealth tax.<\/p>\n
A surtax was approved by Massachusetts voters on November 8, 2022, as a constitutional amendment (known as the \u201cmillionaire\u2019s tax\u201d). It took effect for tax years beginning January 1, 2023, with the revenue for funding public education and transportation\/infrastructure. The tax is not on net worth or assets, but a surtax on taxable income. Under the law, once a taxpayer\u2019s taxable income exceeds a threshold (originally $1,000,000), the portion of income above that threshold is subject to an additional 4% surtax. As of 2025, income above $1,083,150 is subject to the 4% surcharge.<\/p>\n
<\/strong>Recent changes: Under a 2025 budget plan, the top income-tax bracket rate would be increased for high earners. Also, proposals for capital-gains surcharges for high-income households. As of 2025: no statewide net-worth or wealth tax enacted.<\/p>\n
Enacted tax-on-wealth-derived income (\u201cWealth Proceeds Tax\u201d): In 2023, the state adopted a 1% tax targeting investment income \/ capital-gains \/ returns from wealth \u2014 not a tax on total net worth. This is sometimes called a \u201cquasi-wealth tax,\u201d but not a true recurring net-worth tax.<\/p>\n
<\/strong>Discussion\/Proposals: Legislators have proposed various ways to increase taxes on very wealthy residents, e.g., \u201cmark-to-market\u201d taxes on financial assets, higher capital-gains, or income surcharges, closing gaps between capital-gains and ordinary income tax. As of 2025: no statewide wealth (net-worth) tax in force.<\/p>\n
<\/strong>Several states have been mentioned in proposals or discussions, such as Vermont, Pennsylvania, Nevada, etc. However, as of 2025, none appear to have passed lasting, comprehensive \u201cwealth taxes (net-worth taxes).\u201d<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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