{"id":2056,"date":"2026-05-08T21:48:19","date_gmt":"2026-05-09T01:48:19","guid":{"rendered":"https:\/\/ditchtheestatetax.com\/?p=2056"},"modified":"2026-05-08T21:48:19","modified_gmt":"2026-05-09T01:48:19","slug":"wealth-tax-news-5-8-2026","status":"publish","type":"post","link":"https:\/\/ditchtheestatetax.com\/?p=2056","title":{"rendered":"Wealth Tax News \u2013 5\/8\/2026"},"content":{"rendered":"<div class=\"et_pb_section et_pb_section_0 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_0\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_0  et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_divider et_pb_divider_0 et_pb_divider_position_center et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_cta_0 et_pb_promo  et_pb_text_align_center et_pb_bg_layout_dark\">\n<div class=\"et_pb_promo_description\">\n<h2 class=\"et_pb_module_header\">Tell Congress Where You Stand &#8211; Act Now<\/h2>\n<\/div>\n<div class=\"et_pb_button_wrapper\"><a class=\"et_pb_button et_pb_promo_button\" href=\"https:\/\/www.congressweb.com\/PTG\/12\/\" target=\"_blank\" rel=\"noopener\">Urge your representatives to support family-owned businesses by joining the Congressional Family Business Caucus today.<\/a><\/div>\n<\/p><\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_0  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h2><strong>This week\u2019s wealth tax developments ranged from a new federal proposal to tax large trust holdings to intensifying state and local debates in California, Illinois, Washington, and New York over billionaire taxes, millionaire-income taxes, and second-home levies. Across jurisdictions, the core divide was consistent: supporters cast these measures as necessary responses to inequality and funding pressures, while critics warned that high-end taxpayers and investment could move, enforcement could prove difficult, and the long-term business climate could suffer.<\/strong><\/h2>\n<p>\u00a0<\/p>\n<h3><em><strong>Please find summaries of relevant articles with web links below.\u00a0<\/strong><\/em><\/h3>\n<p>\u00a0<\/p>\n<h4><strong>Federal<\/strong><\/h4>\n<p><a href=\"https:\/\/www.murray.senate.gov\/murray-and-wyden-target-billionaire-trusts-introduce-landmark-legislation-to-close-loopholes-sheltering-potentially-trillions-in-untaxed-wealth\/\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.murray.senate.gov\/murray-and-wyden-target-billionaire-trusts-introduce-landmark-legislation-to-close-loopholes-sheltering-potentially-trillions-in-untaxed-wealth\/&amp;source=gmail&amp;ust=1778370606544000&amp;usg=AOvVaw2qmht0GNrjD9DIr7LljxHo\" target=\"_blank\" rel=\"noopener\">Murray and Wyden Target Billionaire Trusts, Introduce Landmark Legislation to Close Loopholes Sheltering Potentially Trillions in Untaxed Wealth \u2013 Office of Sen. Patty Murray<\/a><br \/>Senate Finance Committee Ranking Member Ron Wyden (D-OR) and Sen. Patty Murray (D-WA) introduced the Fair Trusts for Fiscal Responsibility Act of 2026. The bill would:<\/p>\n<ul>\n<li>apply a 1% tax on trust assets between $50 million and $100 million, 1.5% between $100 million and $250 million, 2% between $250 million and $1 billion, and 3% on assets above $1 billion;<\/li>\n<li>make the withholding fully refundable against estate tax liability, and cap total withholding at estate tax owed;<\/li>\n<li>impose new reporting requirements and penalties for noncompliance; and<\/li>\n<li>exempt charitable trusts, ERISA-qualified employee benefit trusts, and other trusts not typically used in estate planning.<\/li>\n<\/ul>\n<p>Sens. Chris Van Hollen (D-MD), Angela Alsobrooks (D-MD), and Cory Booker (D-NJ) are also co-sponsoring the bill. For more information, see here:\u00a0<a href=\"https:\/\/www.murray.senate.gov\/wp-content\/uploads\/2026\/04\/Fair-Trusts-Act-one-pager-2026.pdf\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.murray.senate.gov\/wp-content\/uploads\/2026\/04\/Fair-Trusts-Act-one-pager-2026.pdf&amp;source=gmail&amp;ust=1778370606544000&amp;usg=AOvVaw3LKtDDagPfoNiDDYVnrHuA\" target=\"_blank\" rel=\"noopener\">one-pager<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.murray.senate.gov\/wp-content\/uploads\/2026\/04\/Fair-Trusts-for-Fiscal-Responsibility-Act.pdf\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.murray.senate.gov\/wp-content\/uploads\/2026\/04\/Fair-Trusts-for-Fiscal-Responsibility-Act.pdf&amp;source=gmail&amp;ust=1778370606544000&amp;usg=AOvVaw34s70iS7fRagTJPlFdtZc6\" target=\"_blank\" rel=\"noopener\">bill text<\/a>.<\/p>\n<h4><strong>California<\/strong><\/h4>\n<p><a href=\"https:\/\/www.wsj.com\/wsjplus\/dashboard\/articles\/the-california-wealth-tax-has-a-loopholeheres-how-much-billionaires-could-save-bf7628ab?mod=wsjarticle_topnews_article&amp;product=wsj\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.wsj.com\/wsjplus\/dashboard\/articles\/the-california-wealth-tax-has-a-loopholeheres-how-much-billionaires-could-save-bf7628ab?mod%3Dwsjarticle_topnews_article%26product%3Dwsj&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw0qfvkYZPnG3bZca8ge7OpS\" target=\"_blank\" rel=\"noopener\">The California wealth tax has a loophole\u2014here\u2019s how much billionaires could save \u2013 MarketWatch<\/a><br \/>California\u2019s proposed wealth tax contains a potential loophole: directly held real estate (or property in revocable trusts) is excluded from taxable wealth, while property held through LLCs is not. The WSJ reports that this creates opportunities for individuals to reduce their tax liabilities by restructuring ownership of real estate, potentially saving tens or hundreds of millions collectively.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-06\/a-proposed-billionaire-tax-exposes-the-dual-share-racket\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-06\/a-proposed-billionaire-tax-exposes-the-dual-share-racket&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw2YXSyqbU9Vzsp6_kH45G2U\" target=\"_blank\" rel=\"noopener\">A Proposed Billionaire Tax Exposes the Dual-Share Racket \u2013 Bloomberg Opinion<\/a><br \/>Justin Fox argues that California\u2019s proposed wealth tax could hit some founders far harder than the advertised 5%. He argues that the bill appears to value their wealth using voting control rights tied to dual-class stock structures (but acknowledges that administrators may not take this approach). He says that could make the tax absurdly large for figures like Sergey Brin, Larry Page, and Mark Zuckerberg, while also highlighting a broader debate over whether founder control through supervoting shares is good for investors and corporate governance.<\/p>\n<p><a href=\"https:\/\/www.nbcnews.com\/video\/steyer-only-candidate-who-supports-california-wealth-tax-during-debate-262889541858\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.nbcnews.com\/video\/steyer-only-candidate-who-supports-california-wealth-tax-during-debate-262889541858&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw2bnI2XmFX8sQN15b0YEn86\" target=\"_blank\" rel=\"noopener\">Steyer only candidate who supports California wealth tax during debate \u2013 NBC News<\/a><br \/>During Wednesday\u2019s gubernatorial debate, candidates were asked if they supported the wealth tax. Democratic candidate Tom Steyer was the only one who supports the wealth tax.<\/p>\n<p><a href=\"https:\/\/www.dailycal.org\/news\/campus\/2-influential-economic-scholars-debate-proposed-california-billionaire-tax\/article_156dc996-f09e-4450-9d03-cebd0a5a1d4f.html\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.dailycal.org\/news\/campus\/2-influential-economic-scholars-debate-proposed-california-billionaire-tax\/article_156dc996-f09e-4450-9d03-cebd0a5a1d4f.html&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw3NIpfZ-f8JPFhfqAVWbHHu\" target=\"_blank\" rel=\"noopener\">2 influential economic scholars debate proposed California billionaire tax \u2013 DailyCal.Org<\/a><br \/>At a UC Berkeley debate on May 6, Arthur Laffer and Emmanuel Saez discussed California\u2019s wealth tax proposal. Saez argued that it is a necessary \u201cemergency\u201d response to inequality and funding needs. Laffer warned it would drive wealth and business out of the state while failing to raise the projected revenue. The two economists agreed on broader tax reform ideas like taxing unrealized gains, but differed on whether a billionaire-specific tax is a fair and effective solution.<\/p>\n<p><a href=\"https:\/\/www.ocregister.com\/2026\/05\/04\/douglas-schoen-tax-the-rich-lose-the-rich\/\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.ocregister.com\/2026\/05\/04\/douglas-schoen-tax-the-rich-lose-the-rich\/&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw0GBGbrlo7gf68O6i7Tz8ox\" target=\"_blank\" rel=\"noopener\">Douglas Schoen: Tax the rich, lose the rich \u2013 Orange County Register<\/a><br \/>Douglas Schoen, a longtime Democratic political consultant, argues that California\u2019s proposed wealth tax will backfire by driving high-net-worth residents out of the state, shrinking the tax base, and potentially forcing future expansions of the tax to millionaires or broader groups. He cites estimates that billions of dollars in wealth have already left California, reducing the measure\u2019s projected revenue far below initial claims, and notes that leading Democratic candidates for governor such as Xavier Becerra and Katie Porter have come out against the tax, warning it could undermine long\u2011term growth and funding for public programs.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2026-05-07\/inside-the-milken-conference-billionaires-tom-brady-red-light-therapy-masks\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/news\/newsletters\/2026-05-07\/inside-the-milken-conference-billionaires-tom-brady-red-light-therapy-masks&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw0SP5FrxDYcYdUIDmcLtAnO\" target=\"_blank\" rel=\"noopener\">Inside the Milken Conference: Billionaires, Tom Brady, Red-Light Therapy Masks \u2013 Bloomberg<\/a><br \/>The Milken Conference highlighted growing issues between ultrawealthy attendees and new efforts to \u201ctax the rich,\u201d especially California\u2019s proposed wealth tax and New York\u2019s moves to tax luxury second homes. Some investors, like Barry Sternlicht and Ken Griffin, expressed frustration with blue states for \u201cgoing out of business\u201d by raising taxes on high earners. Jensen Huang, CEO and Founder of NVIDIA, took the opposite line, saying he would simply pay what is asked and framing wealth taxes as a form of giving back. The newsletter also notes that quirks of corporate control\u2014such as dual\u2011class shares held by founders like Sergey Brin, Larry Page, and Mark Zuckerberg\u2014could make their effective tax burden under California\u2019s proposal much higher than the headline 5%.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-07\/fate-of-california-s-billionaire-tax-could-turn-on-primary-race\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-07\/fate-of-california-s-billionaire-tax-could-turn-on-primary-race&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw32uOPaenHDGDb-8N0e4SZ8\" target=\"_blank\" rel=\"noopener\">Fate of California\u2019s Billionaire Tax Could Turn on Primary Race \u2013 Bloomberg Opinion<\/a><br \/>The California governor\u2019s race could shape the fate of the proposed wealth tax by determining whether a future governor publicly backs or opposes it. Erika Smith says the measure already has broad voter support and major attention, but its momentum may depend as much on which gubernatorial candidates advance as on the ballot fight itself.<\/p>\n<p><a href=\"https:\/\/www.washingtonpost.com\/opinions\/2026\/05\/03\/california-billionaire-tax-measure-would-cost-more-than-it-raises\/\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.washingtonpost.com\/opinions\/2026\/05\/03\/california-billionaire-tax-measure-would-cost-more-than-it-raises\/&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw2r5h5KHJgug_IddH4JZODw\" target=\"_blank\" rel=\"noopener\">Opinion | California billionaire tax measure would cost more than it raises \u2013 The Washington Post<\/a><br \/>The Washington Post Editorial Board argues that California is already losing more than it stands to gain from the proposed wealth tax because high\u2011net\u2011worth residents and their family offices are leaving in anticipation of the tax. The Board notes that key figures such as Larry Page, Sergey Brin, Mark Zuckerberg, and others have left or shifted residency, and cited estimates that the resulting outmigration could cost the state billions annually in forgone income-tax revenue and GDP, even though the measure might raise only \u201ctens of billions\u201d and be expensive to enforce. The Board said that the initiative risks undermining California\u2019s tax base and should be decisively rejected by voters.<\/p>\n<p><a href=\"https:\/\/edition.cnn.com\/2026\/05\/05\/politics\/video\/california-governor-newsom-wealth-tax-gray-davis-tsi\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/edition.cnn.com\/2026\/05\/05\/politics\/video\/california-governor-newsom-wealth-tax-gray-davis-tsi&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw2_x9eNjB7cS-TmDzGAwvGw\" target=\"_blank\" rel=\"noopener\">Former CA Gov. Gray Davis: \u2018A wealth tax is a self-inflicted wound\u2019 \u2013 CNN Politics<\/a><br \/>Gov. Davis said a wealth tax is a \u201cself-inflicted wound\u201d because it takes away money for education and billionaires are leaving. Gov. Davis said he is against it, not to help billionaires, but for those who stay and have to fill the funding deficit left behind. Gov. Davis also noted that the top 1% in California is responsible for paying 45% of taxes in the state.<\/p>\n<h4><strong>Illinois<\/strong><\/h4>\n<p><a href=\"https:\/\/www.wandtv.com\/news\/statehouse\/il-progressive-democrats-renew-push-for-billionaire-tax-despite-gop-opposition\/article_0bfb45d9-b3d5-410b-8fd1-7100d7e5d235.html\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.wandtv.com\/news\/statehouse\/il-progressive-democrats-renew-push-for-billionaire-tax-despite-gop-opposition\/article_0bfb45d9-b3d5-410b-8fd1-7100d7e5d235.html&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw3XP2vurPw1nwK5Sy4T96fd\" target=\"_blank\" rel=\"noopener\">IL progressive Democrats renew push for billionaire tax | Illinois Politics | Wand TV<\/a><br \/>Progressive Democrats in Illinois are renewing a push for several tax changes aimed at the very wealthy and large corporations as they head into final budget talks. Their plan includes a mark-to-market billionaire wealth tax that would apply to annual gains in billionaires\u2019 assets (estimated to raise about $916 million a year), along with closing corporate tax loopholes (about $700 million) and adding a digital advertising tax on big tech platforms that lawmakers say could bring in roughly $1.1 billion. Republicans oppose the package, arguing Illinois already has record revenues and warning that new taxes on \u201cjob creators\u201d would drive capital and jobs out of the state instead of solving its budget pressures.<\/p>\n<h4><strong>Washington<\/strong><\/h4>\n<p><a href=\"https:\/\/www.axios.com\/local\/seattle\/2026\/05\/05\/income-tax-referendum-lawsuit-state-government\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.axios.com\/local\/seattle\/2026\/05\/05\/income-tax-referendum-lawsuit-state-government&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw31k5zblSWw99-4j_ihsegU\" target=\"_blank\" rel=\"noopener\">Washington Supreme Court blocks referendum on new millionaires\u2019 income tax \u2013 Axios Seattle<\/a><br \/>Washington\u2019s Supreme Court ruled that the newly enacted millionaire\u2019s tax cannot be challenged through a referendum. The ruling\u00a0makes it more difficult for opponents to block it on the November ballot. The tax can still face a citizen initiative or separate constitutional challenge, but both paths are more difficult than a referendum. The other case challenging its constitutionality is still under consideration by the state Supreme Court.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/opinion\/washington-supreme-court-income-tax-referendum-b4ab5786?mod=Searchresults&amp;pos=1&amp;page=1\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.wsj.com\/opinion\/washington-supreme-court-income-tax-referendum-b4ab5786?mod%3DSearchresults%26pos%3D1%26page%3D1&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw1fpt8X-B59WoBFMmbFi13d\" target=\"_blank\" rel=\"noopener\">Voters Get No Say on a Washington State Income Tax \u2013 WSJ<\/a><br \/>The Wall Street Journal Editorial Board argues that Washington\u2019s Supreme Court improperly blocked voters from using a referendum to challenge the state\u2019s new millionaires tax. The Board argues that lawmakers and judges sidestepped the state\u2019s anti-income-tax tradition by labeling the tax \u201cnecessary\u201d for government support. The Board also said the levy amounts to taxation without voter representation and predicts it may still face a separate constitutional challenge.<\/p>\n<p><a href=\"https:\/\/komonews.com\/news\/local\/seattle-professor-says-millionaires-tax-could-impact-state-business-climate-departures-taxes-taxpayer-funding-public-houseing-economy-amazon-microsoft-washington-workers-salary-inflation-cost-of-living\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/komonews.com\/news\/local\/seattle-professor-says-millionaires-tax-could-impact-state-business-climate-departures-taxes-taxpayer-funding-public-houseing-economy-amazon-microsoft-washington-workers-salary-inflation-cost-of-living&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw0c4TzuQ6hiH1mYisPMwCi0\" target=\"_blank\" rel=\"noopener\">Seattle professor says \u2018millionaires tax\u2019 could impact state business climate, relocations \u2013 KOMO News<\/a><br \/>Joseph Phillips, a Seattle University economist, said Washington\u2019s new millionaires tax could prompt some wealthy residents and business owners to leave, but the near-term economic impact is likely to be modest. His bigger concern is that the tax could damage Washington\u2019s long-term business climate and discourage future entrepreneurs from starting companies there, even though most residents will not be affected.<\/p>\n<h4><strong>New York City<\/strong><\/h4>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-07\/ny-democrats-cut-deal-on-second-home-tax-climate-rollback\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/news\/articles\/2026-05-07\/ny-democrats-cut-deal-on-second-home-tax-climate-rollback&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw01yP9ZZ1TXAiMxgSbxo9YZ\" target=\"_blank\" rel=\"noopener\">NY Budget Deal Including Pied-\u00e0-Terre Tax, Weakened Climate Law \u2013 Bloomberg<\/a><br \/>This week, Gov. Kathy Hochul (D) released New York\u2019s tentative $268 billion budget deal that would add a new pied-\u00e0-terre tax on high-value second homes in New York City, aimed at closing the city\u2019s budget gap without raising broad-based income or corporate tax rates. The tax is expected to apply to non-primary residences worth over about $5 million and could raise up to $500 million a year, but key details are still being negotiated, complicated by the city\u2019s current system of assessing condos and co\u2011ops at well below market value and by the need for stricter audits to prevent owners from claiming second homes as primary residences.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/real-estate\/taxes-on-second-homes-are-springing-up-across-america-93a64448?mod=Searchresults&amp;pos=8&amp;page=1\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.wsj.com\/real-estate\/taxes-on-second-homes-are-springing-up-across-america-93a64448?mod%3DSearchresults%26pos%3D8%26page%3D1&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw1QDA19y2pHVaAnGcGAK_b5\" target=\"_blank\" rel=\"noopener\">Taxes on Second Homes Are Springing Up Across America \u2013 WSJ<\/a><br \/>Cities across the U.S. are moving to tax second homes and vacant properties as a way to raise revenue and ease housing shortages, with proposals in New York City, Rhode Island, San Diego, Montana, and San Francisco. Supporters say the taxes can push owners to rent out empty homes and add housing supply, while critics argue they may drive away wealth people whose spending boosts local economies, may deter investment, and are unlikely to make a big dent in housing affordability.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-07\/-tax-the-rich-won-t-save-cities-like-new-york\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/opinion\/articles\/2026-05-07\/-tax-the-rich-won-t-save-cities-like-new-york&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw3ltf00aQPb9pv_iLdyYKgS\" target=\"_blank\" rel=\"noopener\">\u2018Tax the Rich\u2019 Won\u2019t Save Cities Like New York \u2013 Bloomberg Opinion<\/a><br \/>Nicolas S. Rohatyn, a trustee of the Citizens Budget Commission, argues that \u201ctax the rich\u201d is a politically appealing slogan but not a sufficient strategy for cities like New York. He argues that the real problem is a concentrated and highly mobile tax base. He says cities should focus on broadening opportunity, reducing barriers to higher earnings, and better aligning tax policy with where wealth is created and realized, rather than relying too heavily on taxing a small group of high earners.<\/p>\n<p><a href=\"https:\/\/www.nytimes.com\/2026\/05\/02\/upshot\/mamdani-tax-the-rich.html\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.nytimes.com\/2026\/05\/02\/upshot\/mamdani-tax-the-rich.html&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw3PoVi7pXEr_yLGzk7dOgNs\" target=\"_blank\" rel=\"noopener\">Do Higher Taxes Drive the Rich Away? Mamdani\u2019s Plan Revives the Question. \u2013 The New York Times<\/a><br \/>NYC Mayor Zohran Mamdani is pushing to raise income taxes on millionaires to help fund universal child care and other priorities. Gov. Kathy Hochul (D) opposes the idea over fears of driving wealthy residents away. Supporters point to evidence that past millionaire tax increases like Massachusetts did not cause major exodus. Critics warn the city may be nearing a point where higher rates could start to hurt competitiveness and revenue.<\/p>\n<h4><strong>Other<\/strong><\/h4>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-04-24\/billionaire-sawiris-shutters-london-family-office-after-uk-exit\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberg.com\/news\/articles\/2026-04-24\/billionaire-sawiris-shutters-london-family-office-after-uk-exit&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw38ZjkWDiHXCzu_7xfiC3eG\" target=\"_blank\" rel=\"noopener\">Sawiris Closes London Family Office After Relinquishing UK Residency \u2013 Bloomberg<\/a><br \/>Nassef Sawiris is closing his London family office after giving up UK residency, underscoring how Britain\u2019s higher taxes on wealthy foreign residents are prompting some individuals and their firms to leave. The move is part of a broader shift that has weakened London\u2019s private-wealth sector, with other high-profile departures and related family-office cutbacks following the UK\u2019s tax changes.<\/p>\n<p><a href=\"https:\/\/www.bloomberglaw.com\/bloomberglawnews\/daily-tax-report-state\/XCIH69I8000000?bna_news_filter=daily-tax-report-state#jcite\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.bloomberglaw.com\/bloomberglawnews\/daily-tax-report-state\/XCIH69I8000000?bna_news_filter%3Ddaily-tax-report-state%23jcite&amp;source=gmail&amp;ust=1778370606545000&amp;usg=AOvVaw22gUTKC8burD2CMmVL036s\" target=\"_blank\" rel=\"noopener\">Taxing the Wealthy Won\u2019t Reduce Their Power: Allison Schrager<\/a><br \/>Allison Schrager argues that California\u2019s proposed wealth tax is less about economics than about redistributing power. She says that using the tax code to curb billionaire influence would likely backfire by hurting growth, reducing entrepreneurship, and shifting influence toward government bureaucrats instead. Schrager also warns that defining \u201ctoo much\u201d wealth could expand over time and be used politically, concluding that taxing the wealthy may raise revenue but is not a good way to solve inequality or resentment.<\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_cta_1 et_pb_promo  et_pb_text_align_center et_pb_bg_layout_dark\">\n<div class=\"et_pb_promo_description\">\n<h2 class=\"et_pb_module_header\">Want to learn more?<\/h2>\n<\/div>\n<div class=\"et_pb_button_wrapper\"><a class=\"et_pb_button et_pb_promo_button\" href=\"https:\/\/policyandtaxationgroup.com\/estate-tax-faq\/wealth-tax\/\" target=\"_blank\" rel=\"noopener\">Visit our State and Federal Wealth Tax Tracker &#8211; Click Here<\/a><\/div>\n<\/p><\/div>\n<div class=\"et_pb_module et_pb_divider et_pb_divider_1 et_pb_divider_position_center et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_with_border et_pb_module et_pb_text et_pb_text_1 et_clickable  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p style=\"text-align: center\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7775 aligncenter \" src=\"https:\/\/ditchtheestatetax.com\/wp-content\/uploads\/2023\/04\/brownstein-logo-positive-RGB.png\" alt=\"Wealth Tax News \u2013 5\/8\/2026\" width=\"642\" height=\"95\" title=\"Inside the Milken Conference: Billionaires, Tom Brady, Red-Light Therapy Masks - BloombergThe Milken Conference highlighted growing issues between ultrawealthy attendees and new efforts to \u201ctax the rich,\u201d especially California\u2019s proposed wealth tax and New York\u2019s moves to tax luxury second homes. Some investors, like Barry Sternlicht and Ken Griffin, expressed frustration with blue states for \u201cgoing out of business\u201d by raising taxes on high earners. Jensen Huang, CEO and Founder of NVIDIA, took the opposite line, saying he would simply pay what is asked and framing wealth taxes as a form of giving back. The newsletter also notes that quirks of corporate control\u2014such as dual\u2011class shares held by founders like Sergey Brin, Larry Page, and Mark Zuckerberg\u2014could make their effective tax burden under California\u2019s proposal much higher than the headline 5%.\"><\/p>\n<p><strong>About Brownstein Hyatt Farber Schreck<br \/><\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_divider et_pb_divider_2 et_pb_divider_position_center et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_2 et_clickable  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<h4>We hope you\u2019ve enjoyed this article. While you\u2019re here, we have a small favor to ask\u2026<\/h4>\n<p>As we prepare for what promises to be a pivotal year for America, we\u2019re asking you to consider becoming a <a href=\"https:\/\/policyandtaxationgroup.com\/donate\/\" target=\"_blank\" rel=\"noopener\">supporter<\/a>.<\/p>\n<p>The need for fact-based reporting of issues important to <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">family offices<\/a> and <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">successful families<\/a> and <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">protecting a lifetime of savings<\/a> has never been greater. Now more than ever, <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">family offices<\/a> and <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">successful families<\/a> are under fire. That\u2019s why <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">Family Enterprise USA Action<\/a> is passionately working to increase the awareness of issues important to <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">family offices<\/a> and <a href=\"https:\/\/policyandtaxationgroup.com\/about-us-2\/what-has-been-accomplished\/\" target=\"_blank\" rel=\"noopener\">successful families<\/a>, while continuing to strengthen our presence on Capitol Hill.<\/p>\n<\/div><\/div>\n<div class=\"et_pb_button_module_wrapper et_pb_button_0_wrapper et_pb_button_alignment_center et_pb_module \">\n\t\t\t\t<a class=\"et_pb_button et_pb_button_0 et_pb_bg_layout_light\" href=\"https:\/\/policyandtaxationgroup.com\/donate\/\" target=\"_blank\" rel=\"noopener\">Are you an Family Enterprise USA Action Supporter? If not, we could use your help today!!!<\/a>\n\t\t\t<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_3  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<hr \/>\n<p>Family Enterprise USA Action engages with legislators on Capitol Hill on behalf of <a href=\"https:\/\/policyandtaxationgroup.com\/category\/family-offices\/\" target=\"_blank\" rel=\"noopener\">family offices<\/a>, <a href=\"https:\/\/policyandtaxationgroup.com\/category\/successful-individuals\/\" target=\"_blank\" rel=\"noopener\">successful families<\/a>, and <a href=\"https:\/\/policyandtaxationgroup.com\/category\/family-businesses\/\" target=\"_blank\" rel=\"noopener\">family-owned businesses<\/a>. It is focused exclusively on the <a href=\"https:\/\/policyandtaxationgroup.com\/category\/taxes\/\" target=\"_blank\" rel=\"noopener\">critical tax<\/a> and economic policies that impact them. Since 1995, FEUSA Action has been the leading advocacy group working daily in Washington, D.C., to reduce and eliminate <a href=\"https:\/\/policyandtaxationgroup.com\/category\/estate-tax-2\/\" target=\"_blank\" rel=\"noopener\">estate tax<\/a>, <a href=\"https:\/\/policyandtaxationgroup.com\/category\/taxes\/\" target=\"_blank\" rel=\"noopener\">gift tax<\/a>, and <a href=\"https:\/\/policyandtaxationgroup.com\/category\/taxes\/\" target=\"_blank\" rel=\"noopener\">generation skipping transfer tax<\/a> while blocking increased <a href=\"https:\/\/policyandtaxationgroup.com\/category\/income-tax\/\" target=\"_blank\" rel=\"noopener\">income and capital gains taxes<\/a>, the creation of a <a href=\"https:\/\/policyandtaxationgroup.com\/category\/taxes\/\" target=\"_blank\" rel=\"noopener\">wealth tax<\/a>, and other hostile policies that punish hardworking taxpayers and success in the U.S. It is a bipartisan 501.c4 organization.<\/p>\n<hr \/>\n<\/div><\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_4  et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p>#incometax #CapitalGainsTax #R&amp;DExpensing #DontPunishSuccess #GrantorTrusts #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #incometaxrates #repealestatetax #FamilyOffice #SuccessfulFamilies @PolicyAndTaxationGroup @DitchTheEstateTax #PolicyAndTaxationGroup #DitchTheEstateTax #FamilyEnterpriseUSAAction<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The post <a rel=\"nofollow noopener\" href=\"https:\/\/policyandtaxationgroup.com\/family-businesses\/wealth-tax-news-5-8-2026\/\" target=\"_blank\">Wealth Tax News \u2013 5\/8\/2026<\/a> appeared first on <a rel=\"nofollow noopener\" href=\"https:\/\/policyandtaxationgroup.com\" target=\"_blank\">Family Enterprise USA Action<\/a>.<\/p>\nPolicy and Taxation Group (PATG) is dedicated to the ultimate repeal of estate tax (death tax), gift and generation-skipping transfer (GST) taxes, and the elimination of the destructive effect those taxes have on families, family businesses, generationally owned businesses, and multigenerational businesses, job creation, the national economy, and government revenues. Since 1995, Policy and Taxation Group has been a highly effective voice of families, family businesses, generationally owned businesses, and multigenerational businesses in the fight against the estate tax (death tax). Providing research, polling, expertise, and employing effective lobbying strategies. Policy and Taxation Group is the only organization exclusively dedicated to the repeal of the gift tax, estate tax (death tax) and generation skipping tax.\r\n\r\n@FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyBusiness #Business #SmallBiz #EstateTax #Deathtax #CapitalGainsTax #StepUpInBasis #Taxes #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #promotefamilybusinesses #taxLegislation #AdvocatingForFamilyBusinesses #incometax #Generationallyowned #Multigenerationalbusiness","protected":false},"excerpt":{"rendered":"<p>Tell Congress Where You Stand &#8211; Act Now Urge your representatives to support family-owned businesses by joining the Congressional Family Business Caucus today. This week\u2019s wealth tax developments ranged from a new federal proposal to tax large trust holdings to intensifying state and local debates in California, Illinois, Washington, and New York over billionaire taxes, [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":895,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"xn-wppe-expiration":[],"xn-wppe-expiration-action":[],"xn-wppe-expiration-prefix":[],"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[8],"tags":[27,14,18,17,12,16,13,10,29,22,21,28,23,30,11,25,24,15,19,20,26],"class_list":["post-2056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-estate-tax","tag-advocatingforfamilybusinesses","tag-business","tag-capitalgainstax","tag-deathtax","tag-ditchtheestatetax","tag-estatetax","tag-familybusiness","tag-familyenterpriseusa","tag-generationallyowned","tag-generationskippingtax","tag-gifttax","tag-incometax","tag-inheritancetax","tag-multigenerationalbusiness","tag-policyandtaxationgroup","tag-promotefamilybusinesses","tag-repealestatetax","tag-smallbiz","tag-stepupinbasis","tag-taxes","tag-taxlegislation"],"acf":[],"_links":{"self":[{"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/posts\/2056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2056"}],"version-history":[{"count":1,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/posts\/2056\/revisions"}],"predecessor-version":[{"id":2057,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/posts\/2056\/revisions\/2057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=\/wp\/v2\/media\/895"}],"wp:attachment":[{"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ditchtheestatetax.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}