Millionaire Tax Surge in Blue States

0:00On March 11, Chuck Collins, heir to the Oscar-Mayor fortune, is leading the charge for higher taxes on millionaires like himself. He's helped pass a surtax on income over $1 million in Massachusetts, and now similar measures are spreading to states like California, Maryland, Minnesota, and New Jersey. The latest pushes in Washington, one of the few Democrat-controlled states without an income tax. Earlier this week, Washington's House passed a proposal for nearly 10% tax on personal earnings above $1 million. This comes after nearly a century, without such a tax, due to a Supreme Court ruling. The bill heads back to the Senate, with Democrat Governor Bob Ferguson signalling support if it reaches him by Thursday's adjournment. Revenue would fund free school meals from kindergarten, due 12 grade, childcare, family credits, and rebates on sales taxes for essentials. Like shampoo, supporters argue the state's tax system has been regressive for 93 years, hitting working and middle-class families hardest.

1:02They say it's time the wealthy contribute more, to fix budget shortfalls. Critics, including Republican lawmakers and local business owners, warn it could drive jobs and companies away, especially since it might tax, reinvested business earnings. Meanwhile, other blue states are exploring bold ideas. California eyes a 5% one-time tax on $1 billion fortunes to aid health care. Michigan pushes a ballot measure for a 5% surtax over $500,000 for individuals directing funds to schools. Rhode Island and New York are debating similar hikes. These efforts highlight a growing divide, with progressive states tackling inequality while Republican-led ones cut income taxes. Michigan's tax has already raised $6 billion for education and transport, proving these policies can deliver real benefits without chasing away the rich.