These States May Pass a Wealth Tax Soon

These States May Pass a Wealth Tax Soon

( – The COVID-19 pandemic decimated the budgets of many states as they provided relief to their citizens while losing tax revenue from economic shutdowns. To make up for the deficits, some states consider increasing taxes on the rich to make ends meet.

New Jersey Governor Phil Murphy (D) announced last week that the tax rate on those making between $1 and $5 million will increase from 8.97% to 10.75%. In addition, a tax rebate will be available to individuals making under $75,000 or couples making under $150,000 who have one or more children.

In New York, Democrats are pressuring Governor Andrew Cuomo (D) to increase taxes on the wealthy to make up for the revenue shortfall that’s expected to hit $62 billion by fiscal year 2024. New York State Senator Alessandra Biaggi (D) supports this increase:

However, Cuomo would rather see a nation-wide billionaire tax, rather than put New York at a “competitive disadvantage.” Higher taxes could dissuade the state’s wealthy inhabitants from returning after the pandemic.

Some states hope the federal government will bail them out, while others are learning to balance their own budgets. States must walk a fine line when figuring out where to get their funding as everyone recovers from the economic destruction brought about by COVID-19.

~Here’s to Your Prosperity!

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