How Tax Policy Fared on the Ballot in 2026
In red and blue states alike, voters showed wariness toward novel changes to the tax code, with two notable exceptions.
3 min read
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Spain’s Tax Competitiveness Has Declined Since 2018
Under Spain’s current Social Democratic government, the country has fallen from 27th to 35th (out of 38 OECD countries) in the International Tax Competitiveness Index.
8 min read
The California Billionaire Tax’s Ever-Shifting Goalposts
Wealth taxes have been a failure everywhere they’ve been tried, which may be why advocates for the California amendment are saying this is a new frontier. But the countries that have tried this gamble know the frontier well, and they’ve left it in the dust.
Washington Voters Will Decide Whether to Keep or Reject an Income Tax on High Earners
Washington’s new income tax on high earners doesn’t take effect until 2028, but it is already generating a lot of activity. A measure on the ballot this November, Initiative 645, would reverse the legislature’s decision, preventing the new tax from taking effect.
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Colorado’s Election Day Choice on Income Taxes
On Election Day, Coloradans will get to decide on two competing measures on income taxes: an initiated statute that would cap income taxes at the current 4.4 percent rate; and a constitutional amendment that would authorize a graduated-rate individual and corporate income tax, paired with an initiated statute setting new rates, with a top rate of 8.4 percent.
6 min read
Constitutional Flaws of California’s Proposed Wealth Tax
The California Billionaire Tax Act (Proposition 40), which imposes a one-time 5 percent tax on billionaires’ net worth, is vulnerable to numerous constitutional challenges, any of which could invalidate the tax in whole or in part.
28 min read
Why Wealth Taxes Always Fail
Though they are often framed as affecting only the richest households, the economic effects of wealth taxes extend much further by reducing capital formation, discouraging entrepreneurship, curtailing wage and employment growth, and ultimately weakening the overall economy.
Why Billionaires Are Still Leaving California
The California Billionaire Tax Act’s residency provisions are exceptionally vulnerable to legal challenge. Even if the tax passes and survives challenges to its broader constitutionality, billionaires who leave California sometime in 2026 have good reason to believe they can escape some or all of the tax.
Targeting High Earners is Misguided and Will Worsen States’ Fiscal Positions
Policies that increase the tax burden on high earners makes states less competitive, increase revenue volatility, discourage investment, and risk accelerating outmigration of talent and capital. Many top-earners are already leaving high-tax states for Florida, North Carolina, and other low-tax jurisdictions.
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The Risks the Wealth Tax Advocates Are Ignoring
Voters in California this fall will have to determine whether the state will institute a billionaire tax. Advocates of this proposal have been pushing for these kinds of money grabs for decades—and their arguments often run the same. The base is narrow, the lifespan is limited, the cause is sympathetic.
Testimony: Illinois “Millionaire’s Tax” Would Hurt Small Businesses, Exacerbate Outmigration
Illinois’ proposed Millionaire’s Tax would raise taxes on Illinois families and businesses in an economically damaging way, further harming the state’s competitiveness and reducing economic opportunity even for those Illinois residents who would not owe the tax directly.
Maine’s Proposed Millionaire’s Tax Would Harm the State’s Economy
Maine’s proposed millionaire’s tax would bring Maine’s top income tax rate to 9.15 percent, dealing a blow to the state’s economic competitiveness.
5 min read
Would California’s Wealth Tax Be Temporary?
Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
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State Tax Trends to Watch in 2026
State lawmakers around the country have begun their legislative sessions, and many are considering tax reform. This piece highlights some of the areas on which they are likely to focus.
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The State Income Tax Divergence
Lawmakers in many states continue to pursue additional income tax relief, while their counterparts elsewhere pursue the opposite goal.
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Two Virginia Income Tax Proposals Would Make the State Less Affordable
Should both HB 979 and HB 378 pass, Virginia would have the nation’s highest top marginal rate on investment income.
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A 9.25 Percent Top Income Tax Rate Would Drive Jobs, Investment, and Economic Opportunity Out of Michigan
Michigan’s proposed 5 percent income surtax on high earners, yielding a top marginal rate of 9.25 percent, is also a tax on the small businesses that employ nearly 2 million Michiganders.
25 min read
The Proposed California Wealth Tax Is Far Higher than 5 Percent
The 2026 Billionaire Tax Act, a California ballot initiative, would ostensibly impose a one-time tax of 5 percent on the net worth of the state’s billionaires. Due, however, to aggressive design choices and possible drafting errors, the actual rate on taxpayers’ net worth could be dramatically higher.
18 min read
Proposed Washington Income Tax Would Yield a Top Rate of More Than 18 Percent
A proposed “millionaire’s tax” in Washington State would yield the highest combined state and local top rate in the country.
6 min read
Testimony: Taxation of Ultra-High-Net-Worth Individuals
Instead of implementing new wealth taxes, European policymakers should focus on making the current tax system more efficient and transparent.