Family Enterprise USA

The debate around a wealth tax resurfaced in 2020, with proposals for dramatic increases in estate taxes. While some faced opposition, Senator Ron Wyden introduced legislation focused on taxing unrealized gains. The conversation continues.

A look at the history and current developments surrounding wealth taxes. We'll explore new ideas being proposed and what to expect in the coming years.

Did you know 44% of our members have met with Congress or testified? If you want to make a difference, we can help arrange Hill meetings for you. Don't hesitate to reach out—connecting with your representative truly changes the dialogue.

Governor Gavin Newsom and most leading candidates for governor in California oppose a significant tax initiative. The notable exception is billionaire Tom Steyer, who uniquely supports it.

Understanding the shift towards mark-to-market regimes and annual taxes on unrealized gains. Learn how states like Washington are implementing unique stock and bond taxes, with exemptions for the first $50 million. This trend is spreading across the nation.

There was a proposal to force people with IRAs over $10 million to give up half their balance. This is essentially a wealth tax, as funds removed from traditional IRAs are taxed at ordinary rates. This impacts successful savers.

Democrats in the Senate are proposing new bills that could significantly increase tax rates for high earners. Proposals include a 5% surtax on income above $1 million and a 10% surtax above $2 million, potentially reaching a 49% top tax rate. Another proposal targets investment income with the top marginal rate.

States are exploring wealth taxes, with Rhode Island implementing a 1% tax despite a significant budget surplus. Maryland and Minnesota also have proposals. This raises questions about necessity and impact, especially for property within state borders.

A new proposal in California could introduce a one-time 5% tax on individuals with over $1.1 billion in net wealth. If passed by voters in November, it becomes law retroactively to early 2026, bypassing legislative approval.