Across the United States, a growing dissatisfaction with wage and wealth inequalities—exacerbated by the COVID-19 pandemic—is fueling renewed efforts by advocates and some lawmakers to impose higher taxes on the ultra-rich. This movement aims to address disparities by asking the wealthiest Americans to pay a larger share of taxes, with the goal of funding public services and easing the burden on working- and middle-class families.
One prominent voice in this effort is Chuck Collins, a wealthy heir to the Oscar Mayer processed meat fortune. Despite his own privileged background, Collins has been an outspoken advocate for taxing the rich more heavily. He played a key role in Massachusetts’ implementation of a surtax on incomes over $1 million, a measure that has since inspired similar proposals in other Democratic-leaning states. Collins is a founding member of Patriotic Millionaires, a group of affluent individuals who support higher taxes on the super-rich as a way to combat growing economic inequality. “I think people are waking up to the harms of these inequalities,” Collins said, emphasizing that even wealthy people recognize the dangers of letting disparities grow unchecked.
One state at the forefront of this debate is Washington, which, despite a Democratic majority, has long stood out as one of the few states without an income tax on wages or salaries. The state’s Supreme Court struck down an income tax nearly a century ago, leaving Washington reliant on regressive taxes such as sales taxes that disproportionately affect lower-income residents. Now, facing a budget shortfall, lawmakers are seriously considering a new proposal to impose a nearly 10% annual tax on personal earnings exceeding $1 million.
If passed, this tax would generate billions in new revenue, earmarked for popular programs such as free K-12 school meals, childcare services, a family tax credit, and eliminating sales taxes on essential personal care items like shampoo. The state House of Representatives recently approved the measure after an intense, all-night session, and it is expected to return to the Senate for final approval. Democratic Governor Bob Ferguson has voiced support, provided the legislation reaches his desk before the legislative session ends.
Democratic House Majority Leader Joe Fitzgibbon underscored the regressive nature of Washington’s current tax system, which places a heavier burden on working- and middle-class families. “We don’t need to be a tax haven,” he said, framing the proposed millionaire’s tax as a step toward a more equitable system. However, the proposal is not without its critics. Some Republican lawmakers and business owners warn that higher taxes on the wealthy are not a cure-all for state budget problems and may drive businesses and entrepreneurs out of the state.
Colin Hathaway, a millionaire businessman in Washington, expressed concerns that the tax would unfairly target his roofing company’s earnings, much of which he reinvests back into the business. Having already been impacted by a recent hike in capital gains taxes, Hathaway worries that additional levies could prompt him to relocate his business—and his family, including his children who grew up in the state. “There’s a strong incentive to not be doing business here,” he said. Should the measure pass, it is widely expected to face legal challenges and a potential ballot referendum.
Washington’s debate over taxing the rich fits into a broader national trend where several progressive states are considering or adopting similar measures. California is pursuing perhaps the most ambitious effort: a proposed ballot measure that would impose a one-time 5% tax on the net worth of billionaires. This wealth tax, backed by a major healthcare union, aims to recoup federal funding cuts to health services for low-income populations that were enacted during the Trump administration. However, critics argue that California’s wealth tax initiative reflects a shift away from revenue-raising toward an ideological effort to reduce or even eliminate extreme wealth.
Jared Walczak, a senior fellow at the Tax Foundation, warned that the language around California’s tax proposal reveals an intent to “sustain excessive accumulations of wealth” rather than simply address budgetary needs. This tension between raising revenue and redistributing wealth is central to the ongoing debate.
Other states are also moving to tax their richest residents more heavily. Rhode Island is considering a budget plan championed by Democratic Governor Dan McKee that would raise taxes on incomes over $1 million. In Michigan, activists are gathering signatures for a ballot initiative to replace the state’s flat income tax with a graduated system that adds a 5% surtax on incomes above $500,000 for individuals and $1 million