<\/p>\n
At the federal level, lawmakers introduced the Social Security 2100 Act, which would impose additional investment-income tax on incomes above $400,000, and a bill targeting mega retirement accounts, while a Washington Post op-ed cautioned that wealth taxes could disproportionately burden family farmers. Elsewhere, New York advanced Mayor Mamdani\u2019s pied-\u00e0-terre tax on luxury second homes amid data showing a sharp decline in the state\u2019s millionaire population, Michigan Democrats revived a constitutional amendment for a \u201cfair share\u201d surcharge, and in the UK, King\u2019s College London researchers proposed a 2% minimum tax on \u00a3100 million-plus households while 120 British millionaires publicly asked to be taxed more.<\/strong><\/em><\/h3>\n <\/p>\n
Please find summaries of relevant articles with web links below.<\/strong> Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.<\/a><\/p>\nCalifornia Wealth Tax Initiative 2026: Latest Polls – The New York Times<\/a>
The New York Times has set up a page on their website tracking recent polling on the California wealth tax proposal.<\/p>\nFederal<\/strong><\/h4>\nCalifornia billionaire tax backers work Washington – POLITICO<\/a>
Proponents of California\u2019s wealth tax proposal took their pitch to Washington, with Rep. Ro Khanna (D-CA) helping arrange meetings. Rep. Khanna helped the SEIU-UHW officials meet with California House Democrats and the House Progressive Caucus to build support for the proposed wealth tax.<\/p>\nTrump’s voter claim and Khanna’s moment – POLITICO<\/a>
Last week, more public safety organizations joined the coalition against California\u2019s proposed. The California Professional Firefighters and California State Sheriffs came out against the wealth tax proposal. On the other hand, Rep. Khanna, who supports the measure, facilitated meetings between SEIU-UHW political director Gustavo Medina and House members on the Hill to garner support.<\/p>\nBlumenthal Introduces Bill Strengthening Social Security – Office of Senator Richard Blumenthal<\/a>
The Social Security 2100 Act would\u00a0increase Social Security benefits for current and new beneficiaries by, in part, eliminating the Social Security tax cap. The bill would be paid for, in part, by imposing an additional tax on investment income for taxpayers making over $400,000.<\/p>\nNeal, Wyden Introduce Bill to Crack Down on Mega Retirement Accounts – Ways and Means Democrats<\/a>
On July 22, House Ways and Means Ranking Member Richard Neal (D\u2011MA) and Senate Finance Ranking Member Ron Wyden (D\u2011OR) unveiled legislation to crack down on \u201cmega\u201d tax\u2011preferred retirement accounts, based on new JCT data showing hundreds of millions of dollars parked in a small number of ultra\u2011large IRAs and 401(k)s. The bill would require ultra\u2011wealthy individuals with more than $10 million in combined tax\u2011advantaged retirement balances to take minimum distributions and would bar further IRA and defined contribution plan contributions once total vested balances exceed $10 million, while leaving middle\u2011class savers\u2019 accounts unchanged.<\/p>\nOpinion | Farmers, not billionaires, will pay wealth taxes – The Washington Post<\/a>
Former Sen. Ben Nelson (D-NE) argues that emerging wealth-tax proposals would unfairly burden family farmers by taxing fluctuating asset values rather than realized income. He noted that this could force land-rich but cash-poor operations to sell land, equipment, or livestock to meet annual tax bills. He argued that once the federal government builds the bureaucracy needed to administer a wealth tax, political pressure would push it beyond billionaires, while actual revenue could disappoint as wealthy taxpayers move or shelter assets, shifting the cost to the middle class. Instead of adopting a wealth tax, Sen. Nelson urged policymakers to focus on enforcing the existing tax code and collecting the estimated $700 billion annual unpaid taxes.<\/p>\nCalifornia<\/strong><\/h4>\nBillionaires Prepare $87 Million Ad Campaign to Block California Wealth Tax – The New York Times<\/a>
A coalition backed by Sergey Brin and other wealthy tech investors has reserved nearly $87 million in California advertising to try to stop the proposed billionaire tax.<\/p>\nLawyer: Billionaire tax could cost California $1 trillion \u2013 Yahoo News\/Center Square<\/a>
David Lesperance, an attorney representing ultra-wealthy clients, claims that California\u2019s proposed wealth tax has already prompted high-net-worth individuals to relocate, potentially costing the state over $1 trillion in lost tax revenue. He based the estimate on a combination of publicly known billionaire departures and his own clients who have left or are planning to leave.<\/p>\nAvoiding the billionaire tax – Capitol Weekly<\/a>
Matt Brown said wealthy people have long been conditioned not to take proposed taxes seriously because such measures are often threatened year after year. He added that many were surprised by how aggressive and broad Prop. 40 is. He also warned that the key fight may turn on how far regulators can push asset valuation and net-worth scrutiny.<\/p>\nCalifornia billionaire tax: The risks for biggest state economy in US – CNBC<\/a>
CNBC framed California\u2019s proposed wealth tax as a high\u2011stakes trade-off: it could generate tens of billions in revenue to offset health-care cuts, but opponents, including Gov. Gavin Newsom and both major gubernatorial candidates, warn it may drive billionaires and businesses out, among other reasons. Law professor David Gamage and the SEIU argue the tax would strengthen California\u2019s standard of living and competitiveness.<\/p>\n\u2018Tax The Rich\u2019 Will Be On The Ballot For 14% Of Americans In November – Forbes<\/a>
This year\u2019s midterms will have roughly 14% of Americans \u2013 those in California and Washington \u2013 voting on measures that target only high-wealth and high\u2011income taxpayers. If California\u2019s Prop 40 becomes the first voter\u2011approved wealth tax and Washington voters uphold a new millionaire income tax, it will signal that even high\u2011tax or historically no\u2011income\u2011tax states are willing to impose new taxes on ultra\u2011wealthy residents. Conversely, if voters in these deep\u2011blue states reject the measures, over potential concerns about revenue volatility, capital flight, constitutional risk, or discomfort with taxing wealth rather than income, it would hand powerful ammunition to opponents.<\/p>\nNew York<\/strong><\/h4>\nMamdani Puts Rich Absentee New Yorkers on Notice: ‘You’ve Got Mail’ – Business Insider<\/a>
Mayor Zohran Mamdani\u2019s (D) new pied-\u00e0-terre tax targets luxury second homes in New York City worth at least $5 million, imposing an annual surcharge starting at 0.8% and rising to 1.3% for properties valued at $25 million or more, and expected to raise about $500 million a year from more than 11,000 homes. The city has begun sending notification letters and launched a support webpage, and the tax is poised to hit a number of billionaire absentee owners\u2014including Jeff Bezos, President Donald Trump, Jay\u2011Z and Beyonc\u00e9, and Citadel CEO Ken Griffin\u2014whom Mamdani casts as needing to pay their \u201cfair share\u201d to fund better parks, libraries, and schools.<\/p>\nNY sees dramatic exodus of millionaires \u2014 causing nearly $11B loss in tax revenue: study \u2013 Yahoo Finance<\/a>
A Citizens Budget Commission analysis finds New York\u2019s share of U.S. millionaires fell from 12.7% to 8.7% between 2010 and 2022, leading to an estimated $10.7 billion loss in personal income tax revenue in 2022 alone. The report lands amid concern that Mayor Mamdani\u2019s aggressive \u201ctax the rich\u201d agenda could accelerate wealthy out\u2011migration. Experts warn that the top 1% already pay about 45% of state income taxes and may increasingly choose lower\u2011tax states if they see New York as intent on further hikes.<\/p>\nIllinois<\/strong><\/h4>\nJohnson’s advisory referendum on millionaires tax shot down in latest Council rebellion – Chicago Sun-Times<\/a>
Mayor Brandon Johnson\u2019s (D-Chicago) effort to put an advisory \u201cmillionaires tax\u201d question on Chicago\u2019s November ballot was blocked by a City Council bloc that accused him of abusing direct introductions to committee. Ald. Marty Quinn led the charge, framing the move as a broader fight over Council independence and insisting the issue was procedure, not substance.<\/p>\nMichigan<\/strong><\/h4>\nMichigan Democrats revive push to tax wealthy residents through constitutional amendment – Michigan Advance<\/a>
Last week, Michigan lawmakers\u00a0introduced<\/a>\u00a0a constitutional amendment proposal that would add a \u201cfair share\u201d income tax surcharge starting in 2027. It would apply to individuals earning more than $500,000 and couples earning more than $1 million annually. The revenue generated from the tax would fund pre\u2011K\u201312 education, childcare, health and human services, housing and water infrastructure. The measure would require two\u2011thirds approval in both legislative chambers to reach the ballot under Michigan\u2019s constitutional amendment process.<\/p>\nOther<\/strong><\/h4>\nWill there be a U.S. wealth tax? What you need to know – J.P. Morgan Private Bank U.S.<\/a>
J.P. Morgan concluded that a federal wealth tax is very unlikely in the next few years and would immediately face major constitutional challenges, given historic limits on \u201cdirect\u201d taxes and unresolved questions about taxing unrealized gains. Instead, they emphasize that states are the real testing ground: several have recently adopted or debated higher top rates on high-income taxpayers or asset\u2011based levies, such as California\u2019s one\u2011time 5% billionaire tax initiative and Washington\u2019s new millionaires tax. They note that these state proposals blur the line between traditional property taxes and broader wealth taxes, and may prompt some high\u2011net\u2011worth individuals to consider relocation or planning to manage exposure.<\/p>\nTwo percent minimum tax on richest households could raise \u00a310 billion – King’s College London<\/a>
A report by the King\u2019s College London says a 2% minimum annual tax on households with more than \u00a3100 million in wealth could raise around \u00a310 billion in 2026 and affect fewer than 1,000 UK households. The report argues the proposal would be targeted and practical, with a 10-year post-emigration liability to reduce tax-motivated relocation.<\/p>\nGary Lineker among millionaires asking Andy Burnham to tax them more – BBC<\/a>
A group of 120 UK millionaires, including Gary Lineker, Brian Eno, Val McDermid, Gary Stevenson, Richard Curtis and Ian Gregg, have signed an open letter urging Prime Minister Andy Burnham to introduce a wealth tax on fortunes above \u00a310 million. They argue that they \u201ccan afford it\u201d and that taxing asset-based wealth rather than ordinary earnings would help devolve wealth and power from the richest and fund public investment.<\/p>\n[\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” 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=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n
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This week\u2019s wealth tax coverage centers on California\u2019s billionaire tax proposal (Prop 40), where Rep. Ro Khanna (D-CA) helped wealth tax backers make their case to congressional Democrats even as public safety groups joined the opposition and a Sergey Brin-backed coalition reserved nearly $87 million in ads to defeat it. At the federal level, […]<\/p>\n","protected":false},"author":2,"featured_media":17959,"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":[48,3,92,115],"tags":[],"class_list":["post-17953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953","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=17953"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953\/revisions"}],"predecessor-version":[{"id":17960,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953\/revisions\/17960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/17959"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
California Wealth Tax Initiative 2026: Latest Polls – The New York Times<\/a> California billionaire tax backers work Washington – POLITICO<\/a> Trump’s voter claim and Khanna’s moment – POLITICO<\/a> Blumenthal Introduces Bill Strengthening Social Security – Office of Senator Richard Blumenthal<\/a> Neal, Wyden Introduce Bill to Crack Down on Mega Retirement Accounts – Ways and Means Democrats<\/a> Opinion | Farmers, not billionaires, will pay wealth taxes – The Washington Post<\/a> Billionaires Prepare $87 Million Ad Campaign to Block California Wealth Tax – The New York Times<\/a> Lawyer: Billionaire tax could cost California $1 trillion \u2013 Yahoo News\/Center Square<\/a> Avoiding the billionaire tax – Capitol Weekly<\/a> California billionaire tax: The risks for biggest state economy in US – CNBC<\/a> \u2018Tax The Rich\u2019 Will Be On The Ballot For 14% Of Americans In November – Forbes<\/a> Mamdani Puts Rich Absentee New Yorkers on Notice: ‘You’ve Got Mail’ – Business Insider<\/a> NY sees dramatic exodus of millionaires \u2014 causing nearly $11B loss in tax revenue: study \u2013 Yahoo Finance<\/a> Johnson’s advisory referendum on millionaires tax shot down in latest Council rebellion – Chicago Sun-Times<\/a> Michigan Democrats revive push to tax wealthy residents through constitutional amendment – Michigan Advance<\/a> Will there be a U.S. wealth tax? What you need to know – J.P. Morgan Private Bank U.S.<\/a> Two percent minimum tax on richest households could raise \u00a310 billion – King’s College London<\/a> Gary Lineker among millionaires asking Andy Burnham to tax them more – BBC<\/a> [\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” 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=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n About Brownstein Hyatt Farber Schreck [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” 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 color=”#397389″ divider_style=”dotted” divider_weight=”2px” 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 2″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _builder_version=”4.19.4″ _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=03T2VODneEg” _builder_version=”4.19.4″ _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=fHIxWaTwK64″ _builder_version=”4.19.4″ _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=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _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=”on|on|on” admin_label=”Hash tags & Tags” _builder_version=”4.27.6″ _module_preset=”default” disabled=”on” 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":" This week\u2019s wealth tax coverage centers on California\u2019s billionaire tax proposal (Prop 40), where Rep. Ro Khanna (D-CA) helped wealth tax backers make their case to congressional Democrats even as public safety groups joined the opposition and a Sergey Brin-backed coalition reserved nearly $87 million in ads to defeat it. At the federal level, […]<\/p>\n","protected":false},"author":2,"featured_media":17959,"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":[48,3,92,115],"tags":[],"class_list":["post-17953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953","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=17953"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953\/revisions"}],"predecessor-version":[{"id":17960,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17953\/revisions\/17960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/17959"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The New York Times has set up a page on their website tracking recent polling on the California wealth tax proposal.<\/p>\nFederal<\/strong><\/h4>\n
Proponents of California\u2019s wealth tax proposal took their pitch to Washington, with Rep. Ro Khanna (D-CA) helping arrange meetings. Rep. Khanna helped the SEIU-UHW officials meet with California House Democrats and the House Progressive Caucus to build support for the proposed wealth tax.<\/p>\n
Last week, more public safety organizations joined the coalition against California\u2019s proposed. The California Professional Firefighters and California State Sheriffs came out against the wealth tax proposal. On the other hand, Rep. Khanna, who supports the measure, facilitated meetings between SEIU-UHW political director Gustavo Medina and House members on the Hill to garner support.<\/p>\n
The Social Security 2100 Act would\u00a0increase Social Security benefits for current and new beneficiaries by, in part, eliminating the Social Security tax cap. The bill would be paid for, in part, by imposing an additional tax on investment income for taxpayers making over $400,000.<\/p>\n
On July 22, House Ways and Means Ranking Member Richard Neal (D\u2011MA) and Senate Finance Ranking Member Ron Wyden (D\u2011OR) unveiled legislation to crack down on \u201cmega\u201d tax\u2011preferred retirement accounts, based on new JCT data showing hundreds of millions of dollars parked in a small number of ultra\u2011large IRAs and 401(k)s. The bill would require ultra\u2011wealthy individuals with more than $10 million in combined tax\u2011advantaged retirement balances to take minimum distributions and would bar further IRA and defined contribution plan contributions once total vested balances exceed $10 million, while leaving middle\u2011class savers\u2019 accounts unchanged.<\/p>\n
Former Sen. Ben Nelson (D-NE) argues that emerging wealth-tax proposals would unfairly burden family farmers by taxing fluctuating asset values rather than realized income. He noted that this could force land-rich but cash-poor operations to sell land, equipment, or livestock to meet annual tax bills. He argued that once the federal government builds the bureaucracy needed to administer a wealth tax, political pressure would push it beyond billionaires, while actual revenue could disappoint as wealthy taxpayers move or shelter assets, shifting the cost to the middle class. Instead of adopting a wealth tax, Sen. Nelson urged policymakers to focus on enforcing the existing tax code and collecting the estimated $700 billion annual unpaid taxes.<\/p>\nCalifornia<\/strong><\/h4>\n
A coalition backed by Sergey Brin and other wealthy tech investors has reserved nearly $87 million in California advertising to try to stop the proposed billionaire tax.<\/p>\n
David Lesperance, an attorney representing ultra-wealthy clients, claims that California\u2019s proposed wealth tax has already prompted high-net-worth individuals to relocate, potentially costing the state over $1 trillion in lost tax revenue. He based the estimate on a combination of publicly known billionaire departures and his own clients who have left or are planning to leave.<\/p>\n
Matt Brown said wealthy people have long been conditioned not to take proposed taxes seriously because such measures are often threatened year after year. He added that many were surprised by how aggressive and broad Prop. 40 is. He also warned that the key fight may turn on how far regulators can push asset valuation and net-worth scrutiny.<\/p>\n
CNBC framed California\u2019s proposed wealth tax as a high\u2011stakes trade-off: it could generate tens of billions in revenue to offset health-care cuts, but opponents, including Gov. Gavin Newsom and both major gubernatorial candidates, warn it may drive billionaires and businesses out, among other reasons. Law professor David Gamage and the SEIU argue the tax would strengthen California\u2019s standard of living and competitiveness.<\/p>\n
This year\u2019s midterms will have roughly 14% of Americans \u2013 those in California and Washington \u2013 voting on measures that target only high-wealth and high\u2011income taxpayers. If California\u2019s Prop 40 becomes the first voter\u2011approved wealth tax and Washington voters uphold a new millionaire income tax, it will signal that even high\u2011tax or historically no\u2011income\u2011tax states are willing to impose new taxes on ultra\u2011wealthy residents. Conversely, if voters in these deep\u2011blue states reject the measures, over potential concerns about revenue volatility, capital flight, constitutional risk, or discomfort with taxing wealth rather than income, it would hand powerful ammunition to opponents.<\/p>\nNew York<\/strong><\/h4>\n
Mayor Zohran Mamdani\u2019s (D) new pied-\u00e0-terre tax targets luxury second homes in New York City worth at least $5 million, imposing an annual surcharge starting at 0.8% and rising to 1.3% for properties valued at $25 million or more, and expected to raise about $500 million a year from more than 11,000 homes. The city has begun sending notification letters and launched a support webpage, and the tax is poised to hit a number of billionaire absentee owners\u2014including Jeff Bezos, President Donald Trump, Jay\u2011Z and Beyonc\u00e9, and Citadel CEO Ken Griffin\u2014whom Mamdani casts as needing to pay their \u201cfair share\u201d to fund better parks, libraries, and schools.<\/p>\n
A Citizens Budget Commission analysis finds New York\u2019s share of U.S. millionaires fell from 12.7% to 8.7% between 2010 and 2022, leading to an estimated $10.7 billion loss in personal income tax revenue in 2022 alone. The report lands amid concern that Mayor Mamdani\u2019s aggressive \u201ctax the rich\u201d agenda could accelerate wealthy out\u2011migration. Experts warn that the top 1% already pay about 45% of state income taxes and may increasingly choose lower\u2011tax states if they see New York as intent on further hikes.<\/p>\nIllinois<\/strong><\/h4>\n
Mayor Brandon Johnson\u2019s (D-Chicago) effort to put an advisory \u201cmillionaires tax\u201d question on Chicago\u2019s November ballot was blocked by a City Council bloc that accused him of abusing direct introductions to committee. Ald. Marty Quinn led the charge, framing the move as a broader fight over Council independence and insisting the issue was procedure, not substance.<\/p>\nMichigan<\/strong><\/h4>\n
Last week, Michigan lawmakers\u00a0introduced<\/a>\u00a0a constitutional amendment proposal that would add a \u201cfair share\u201d income tax surcharge starting in 2027. It would apply to individuals earning more than $500,000 and couples earning more than $1 million annually. The revenue generated from the tax would fund pre\u2011K\u201312 education, childcare, health and human services, housing and water infrastructure. The measure would require two\u2011thirds approval in both legislative chambers to reach the ballot under Michigan\u2019s constitutional amendment process.<\/p>\nOther<\/strong><\/h4>\n
J.P. Morgan concluded that a federal wealth tax is very unlikely in the next few years and would immediately face major constitutional challenges, given historic limits on \u201cdirect\u201d taxes and unresolved questions about taxing unrealized gains. Instead, they emphasize that states are the real testing ground: several have recently adopted or debated higher top rates on high-income taxpayers or asset\u2011based levies, such as California\u2019s one\u2011time 5% billionaire tax initiative and Washington\u2019s new millionaires tax. They note that these state proposals blur the line between traditional property taxes and broader wealth taxes, and may prompt some high\u2011net\u2011worth individuals to consider relocation or planning to manage exposure.<\/p>\n
A report by the King\u2019s College London says a 2% minimum annual tax on households with more than \u00a3100 million in wealth could raise around \u00a310 billion in 2026 and affect fewer than 1,000 UK households. The report argues the proposal would be targeted and practical, with a 10-year post-emigration liability to reduce tax-motivated relocation.<\/p>\n
A group of 120 UK millionaires, including Gary Lineker, Brian Eno, Val McDermid, Gary Stevenson, Richard Curtis and Ian Gregg, have signed an open letter urging Prime Minister Andy Burnham to introduce a wealth tax on fortunes above \u00a310 million. They argue that they \u201ccan afford it\u201d and that taxing asset-based wealth rather than ordinary earnings would help devolve wealth and power from the richest and fund public investment.<\/p>\n<\/p>\n
<\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/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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