Since 2021, 43 states have provided substantial taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. relief for taxpayers and businesses. But this year, a new trend has emerged in the opposite direction: a push for states to tax investment.
From coordinated wealth taxA wealth tax is imposed on an individual’s net wealth, or the market value of their total owned assets minus liabilities. A wealth tax can be narrowly or widely defined, and depending on the definition of wealth, the base for a wealth tax can vary. proposals to higher capital gains income taxes, some state legislatures are going after high earners.
Jared Walczak, V.P. of State Projects at the Tax Foundation, joins Jesse to discuss how these measures would affect investment, job creation, and migration between states–and why they’re happening now.