They Say It's a Tax on Millionaires. It Won't Stay That Way

Let’s stop pretending. 

Maine’s new tax on millionaires is being sold as a narrow measure aimed only at the wealthy. Signed into law by Governor Janet Mills, the policy imposes a 2% surcharge on income over $1 million, effective January 1, 2026.  

California also has proposed a ballot initiative taxing billionaires a one-time 5% tax to be voted on in November of this year. The state is looking to raise funds by targeting approximately 200-214 of the state’s wealthiest taxpayers.  

On its surface, the measure sounds modest and targeted to a specific demographic. But policies like this rarely stay that way. 

Most Americans hear the phrase “billionaire” or “millionaire” tax and assume it has nothing to do with them. That is precisely what makes proposals like this so politically effective and economically shortsighted. Tax increases framed as targeting only the highest earners rarely remain confined to their original audience.