States Are Already Moving in This Direction

The federal proposal isn’t the only wealth tax effort gaining traction. Several states—including California, New York, Washington, and Minnesota—have recently introduced or explored wealth taxes, capital gains levies, or surtaxes targeting the ultra-wealthy.

California’s own 5% wealth tax proposal, backed by a major healthcare workers’ union and supported by Rep. Khanna, would apply to state residents with more than $1 billion in net worth as of January 1, 2026, though it faces opposition from Gov. Gavin Newsom. Similar proposals have emerged in Washington state, where a 9.9% millionaire tax has also recently been floated.

The trend reflects a growing political appetite, at both the state and federal level, for revisiting how extreme wealth is taxed — particularly as retirement security, Social Security solvency, and the rising cost of Medicare and prescription drugs dominate public debate.