Millionaire Taxes: Boon or Bust for States?

0:00More states of slapping taxes on millionaires to fund schools, health care, and roads. But this could backfire on everyone. Washington just hit folks with household income, over $1 million dollars, with a 9.9% levy. Massachusetts has a 4% surtax since 2023, and Maine added a 2% surcharge on earnings above 1 million, this April. Proposals are popping up in places like California, Rhode Island, and even New York City. Banks at the tax foundation Warren, these taxes rely on a tiny group of high earners, whose income yo-yo's with the stock market and business profits. When markets boom, cash flows in. When they crash, revenue vanishes, but spending doesn't shrink. Supporters cheer Massachusetts, pulling in nearly $6 billion extra, with millionaire numbers actually growing there. Puppet polls show most Americans feel the wealthy dodged their fair share, fueling this push in blue states while red ones cut top rates. That creates a real divide over 20 states, slash their highest income taxes since 2021.

1:05Business owners might bolt to no income tax spots like Texas or Florida to dodge Washington's new hit. Bottom line, these taxes bet big on steady markets and millionaire sticking around. If things tank, everyday services could get slashed, hitting regular folks' hardest no matter where they live. Answer your update from Durham News Today, powered by AI.