{"id":18273,"date":"2026-08-29T14:34:30","date_gmt":"2026-08-29T21:34:30","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=18273"},"modified":"2026-08-29T14:34:35","modified_gmt":"2026-08-29T21:34:35","slug":"wealth-tax-news-8-21-2026","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/feusa\/wealth-tax-news-8-21-2026\/","title":{"rendered":"Wealth Tax News \u2013 8\/21\/2026"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”4px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” 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=”Make Your Voice Heard on Capitol Hill” button_url=”https:\/\/www.congressweb.com\/PTG\/12\/” url_new_window=”on” button_text=”Contact your members of Congress now and ask them to stand with family businesses by joining the Caucus.” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.6″ _module_preset=”default” header_font_size=”22px” background_color=”#397389″ custom_button=”on” button_bg_color=”#ff0019″ custom_margin=”-17px|||||” custom_padding=”16px||19px|||” global_module=”9695″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_cta][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=9hWIUCjW1LI” disabled_on=”on|on|on” _builder_version=”4.27.6″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_video][et_pb_text admin_label=”1″ _builder_version=”4.27.7″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n

This week saw continued momentum against state-level wealth taxes, as California billionaires poured nearly $40 million more into the fight against Prop 40 and critics \u2014 including Mark Cuban \u2014 highlighted the impracticality of taxing illiquid startup wealth, while Washington\u2019s enacted millionaire tax faced a repeal initiative even as revenue projections rose from initial estimates.<\/strong><\/h2>\n

 <\/p>\n

Meanwhile, New York\u2019s real estate industry urged a pause on the city\u2019s new pied-\u00e0-terre tax amid a chaotic rollout, Rhode Island homeowners filed the first lawsuit challenging the state\u2019s new \u201cTaylor Swift Tax\u201d on second homes, and commentators warned that capital mobility will continue to undermine efforts to tax the wealthy at both the state and national level.<\/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>\n

California 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>\n

California<\/strong><\/h4>\n

Mark Cuban bests Ro Khanna on wealth taxes for startups – The Washington Post Op-ed<\/a>;\u00a0California Rep. Ro Khanna debates billionaire tax with Mark Cuban, Bill Ackman – CNBC<\/a>
The Editorial Board criticized Rep. Ro Khanna\u2019s (D-CA) support (in response to a question posed by Mark Cuban) for California\u2019s proposed billionaire tax (Prop 40) focusing on his suggestion that illiquid start-up founders could take government loans against their company shares to pay the tax. It argues that this approach would expose the state to losses if highly valued start-ups fail, effectively leaving California with stakes in unsuccessful companies. The Board also argued that wealth taxes are difficult to administer because billionaire assets are often illiquid and hard to value, and it cites these challenges as a reason many countries have abandoned such taxes.<\/p>\n

California billionaires add millions to bolster fight against wealth tax \u2013 Financial Times<\/a>;\u00a0Billionaires open the purse to fight California wealth tax \u2013 Los Angeles Times<\/a>
California billionaires and investors have added nearly $40 million to the campaign against Proposition 40. The opposition group, Building a Better California, has a major war chest with large contributions from figures including Chris Larsen, John Doerr, and Sergey Brin, while also funding rival measures intended to block the tax. Most recently, Chris Larsen, executive chair of blockchain company Ripple, donated an additional $10 million to the group and John Doerr contributed $7.5 million. Investor John Hering gave $946,00 and Neil Mehta, Founder of Greenoaks Capital, donated $250,000. Building a Better California has also put down $5 million each into the anti-Prop 40 campaign and two campaigns supporting rival measures.<\/p>\n

California billionaire tax debate: Here’s what to know – CNBC<\/a>
Robert Frank discussed the Mark Cuban and Rep. Khanna debate over the weekend. Frank cited a recent study that notes 2\/3rds of taxable billionaire wealth is in public founder equity and only 10% in private companies, financial funds, or another combination. Frank also discussed the counter measures to Prop 40, which are Prop 41 and 42, which would nullify the tax if enacted.<\/p>\n

When talking about Props 40, 41, and 42, he notes that if all of them pass, the one with the most votes wins. He notes that Prop 42 essentially prohibits new taxes on retirement accounts and certain personal assets, which he notes Californians would likely vote in favor of.<\/p>\n

California\u2019s wealth tax is already failing \u2013 Washington Examiner<\/a>
The Editorial Board argues that Prop 40 would be difficult to administer and economically damaging, particularly for startup founders whose wealth is tied up in illiquid company stock. It highlights Mark Cuban\u2019s criticism of Rep. Khanna\u2019s suggestion that founders could borrow from the state to pay the tax, arguing this could ultimately give government ownership stakes in private firms. The Board further warns that wealthy residents and prospective entrepreneurs may relocate to lower-tax states, reducing long-term income-tax revenue and weakening California\u2019s innovation economy, while questioning whether the tax would remain temporary.<\/p>\n

Tom Steyer talks climate, billionaire tax and the progressive wave skipping California – POLITICO<\/a>
After finishing third in California\u2019s gubernatorial primary, Tom Steyer (D) says he is returning to climate investing and advocacy. Steyer supports the billionaire-tax ballot measure as preferable to inaction but argues it is poorly designed compared with broader reforms such as taxing commercial property at market value.<\/p>\n

Military veterans sound alarm over California hospital crisis in new Prop 40 Billionaire Tax ad – Yes on 40<\/a>;\u00a0Military Veterans for Prop 40 Ad – Yes on 40<\/a>
The Yes on 40 campaign released a new ad featuring military veterans and frontline healthcare workers urging Californians to support Prop 40. The campaign committee cited endorsements from Democratic and labor organizations and polling showing majority support in the press release about the ad.<\/p>\n

New York<\/strong><\/h4>\n

NY\u2019s Real Estate Industry Calls for Second Home Tax Pause \u2013 Bloomberg Law<\/a>
New York City\u2019s real estate industry is urging Mayor Mamdani to pause implementation of the new pied-\u00e0-terre tax, citing a rushed, confusing rollout and errors in a public list of potentially affected properties. The Department of Finance sent 17,000 notices to owners who may owe the tax, with appeals due Sept. 18, while at least 4,300 owners have sought exemptions. The tax faces litigation and unresolved administrative questions, including treatment of vacant apartments, trusts, and co-op residents.<\/p>\n

Washington<\/strong><\/h4>\n

Washington revenue officials: Income tax will bring in more money than first expected – OPB<\/a>
Washington\u2019s Department of Revenue estimates that the state\u2019s new millionaire tax will generate $3.1 billion in its first fiscal year and about $8.3 billion in the 2029-31 biennium, up from earlier projections of $2.7 billion and $6.9 billion. The revision reflects stronger forecasts for wages, dividends, stock income, and personal income, which are expected to raise the number of affected households from 21,000 to 25,000. The higher estimates could reduce anticipated state budget cuts if voters reject Initiative 645, which would repeal the tax.<\/p>\n

Public sector unions pushing millionaire tax in Washington state – The Washington Post Op-ed<\/a>
The Editorial Board argues that Washington\u2019s millionaire tax would raise Seattle\u2019s top marginal tax rate to nearly 58% when combined with federal and local taxes. It criticized public-sector unions for heavily funding the campaign against a referendum that would repeal the tax, Initiative 645, and argued that they would benefit from increased government spending and union employment. The Board warns that the tax could drive high earners and businesses elsewhere, questioned whether higher taxes improve public services, and argued the measure may conflict with Washington\u2019s constitutional limits on property taxes.<\/p>\n

Rhode Island<\/strong><\/h4>\n

\u2018Taylor Swift Tax\u2019 Draws First Suit From Rhode Island Homeowners\u00a0 – Bloomberg Law<\/a>
On Wednesday, 40+ Rhode Island property owners filed a lawsuit challenging the state\u2019s new \u201cTaylor Swift Tax.\u201d The tax took effect July 1 and imposes an additional $5 per $1,000 of assessed value above $1 million on second homes. The plaintiffs argue that the tax unfairly targets non-residents, lacks a rational basis for its selective application, and violates federal and state constitutional principles, including \u201cno taxation without representation.\u201d The case,\u00a0Adams v. Rhode Island<\/em>, was filed in Newport County Superior Court against the state, its Division of Taxation, and administrator Neena S. Savage.<\/p>\n

Other<\/strong><\/h4>\n

It\u2019s Hard to Tax Things That Move – WSJ (Opinion)<\/a>
Wealth and other relevant taxes on high-income individuals are likely to fail because capital has become increasingly mobile across states and countries. Lower communication, transportation, and relocation costs allow businesses, assets, and workers to move more easily to lower-tax, less-regulated jurisdictions.<\/p>\n

Why Britain Is Shedding Millionaires – WSJ (Opinion)<\/a>
The Editorial Board argued that Britain\u2019s high and potentially rising taxes, combined with weak growth and regulations are driving wealthy residents and prospective wealth creators to leave the country. The Board cited declines in the number of British millionaires and outward migration, warning that proposals such as a wealth tax could further shrink the tax base as affluent people relocate to more favorable jurisdictions.<\/p>\n

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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

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This week saw continued momentum against state-level wealth taxes, as California billionaires poured nearly $40 million more into the fight against Prop 40 and critics \u2014 including Mark Cuban \u2014 highlighted the impracticality of taxing illiquid startup wealth, while Washington\u2019s enacted millionaire tax faced a repeal initiative even as revenue projections rose from initial estimates. […]<\/p>\n","protected":false},"author":2,"featured_media":18279,"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-18273","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\/18273","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=18273"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18273\/revisions"}],"predecessor-version":[{"id":18280,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/18273\/revisions\/18280"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/18279"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}