'Tax the Rich' proposals continue to ramp up: Democratic states leading the way

Added: 2026-05-07

[00:00:00]From New York City to Seattle, Washington, Democratic progressives and far-left socialists continue to ramp up efforts to tax the rich, but in some states, the proposed policies are driving Americans and businesses out.

[00:00:12]The National News Desk, Jeff Harris, joins us. So, we know when these people and these corporations, I should say, decide to leave, Jeff, someone has to make up the cost. You took a deep dive into the areas most impacted. Tell us more. So, multiple Democratic-led states and cities like California, Washington state, and New York City continue to ramp up efforts to tax the rich, mostly in an effort to address budget deficits, but the proposals are causing some top earners to then leave, shifting the burden of maintaining each specific area to a new group of residents. Let's start in Seattle, where self-described Democratic socialist Mayor Katie Wilson is now being slammed for her recent dismissive comments regarding the city's exodus of wealthy residents.

[00:00:53]>> I think the claims that millionaires are going to leave our state are like super overblown, and if, you know, the ones that leave, like, bye.

[00:01:01]>> One of the companies being waved off, Starbucks. In March, the coffee giant announcing a $100 million investment to open a new corporate office in Nashville, Tennessee, which has no state income tax and lower operating costs.

[00:01:14]The company's former CEO, Howard Schultz, also taking his reported $3.5 billion net worth to Miami, Florida. His move coinciding with the state's passage of a 9.9% millionaires tax. But Washington D.C. is taking us backwards.

[00:01:28]The good news is here in Washington state, we're moving forward, everybody.

[00:01:31]>> On the East Coast, New York City Mayor Zoran Momdani spearheading tax the rich efforts to try and cut into the city's projected $2.2 billion budget deficit.

[00:01:41]Not only asking the state for a bailout to help close the gap, but also proposing a tax on second homes if valued over $5 million. This tax will raise at least $500 million directly for the city.

[00:01:53]>> IRS data shows these policies, in part, are leading to relocation. California, who has a billionaires tax on the 2026 ballot, lost just under $12 billion in income from 2022 to 2023, followed by New York and Illinois. The biggest winners, Florida and Texas, both of whom don't have state income tax, gaining over $20 billion and $5 billion, respectively. Meanwhile, in Maryland, residents telling Sinclair's WBFF rising costs are causing them to relocate. In 2025, Governor Wes Moore signing the largest tax and fee increase in state history.

[00:02:27]>> Just to pay this much money, this much utilities, this much taxes, it's it's really too much. Plus, Vermont Senator Bernie Sanders, who in March introduced the Make Billionaires Pay Their Fair Share Act, was seen campaigning with controversial Michigan Senate candidate Abdul El-Sayed over the weekend, saying D.C. needs leaders who will take on the political establishment.

[00:02:52]>> Today in American history, we have more income and wealth inequality than we have ever had in the history of our country.

[00:03:02]Now, data also showing the top 1% of earners pay 40% of income taxes and 27% of all federal taxes. The highest tax states, New York, Connecticut, and California. Meanwhile, the lowest, Alaska, Wyoming, and also Tennessee. The data also showing when it comes to corporate taxes, rates are highest in New Jersey, Minnesota, and the third there, Illinois. Reporting for the National News Desk, I'm Jeff Harris.