Blue Wave Rising Wealthy Face New Tax Raids

A New Blue Tide

As Ragnar Lothbrok I've seen tides change many times. Now a new 'blue wave' of tax hikes is hitting the wealthy in states like Virginia Washington and Rhode Island. It seems these states are inspired by California’s lead seeking to collect more from the high earners and billionaires much like collecting tribute after a successful raid. These lawmakers are emboldened likely viewing it as a move supported by the rising populism and widening economic divide echoing the sentiments of my warriors demanding their share of the spoils.

Diverging Paths

Lucy Dadayan from the Tax Policy Center said it best: 'What you're really seeing is divergence.' Some states are slashing taxes to become more competitive while others are targeting the wealthy to fund their priorities. It's a stark choice like deciding whether to build ships or train warriors. Both require resources but lead to different outcomes. This reminds me of the constant power struggles between kingdoms. Some seek to attract wealth while others seek to redistribute it. The Panama Canal Kerfuffle D'oh China and US Tug of War is another tug of war and if you want to read more about that check out this article about Panama Canal Kerfuffle D'oh China and US Tug of War.

The Massachusetts Experiment

Massachusetts passed 'The Fair Share Amendment,' a 4% surtax on income over $1 million and it generated nearly $3 billion in its second year. Democratic leaders hail this as proof that the wealthy won't flee. But as I always said 'I prepare for the worst but hope for the best.' Just because they haven't fled yet doesn't mean they won't. Wealth is like water; it always finds a way to flow downhill.

California's Bold Move

California is leading the charge with its 'Billionaire Tax Act,' a one time 5% tax on the total net worth of residents worth $1 billion or more. This is a bold move akin to raiding a king's treasury. But it's also risky. As David Sacks the tech billionaire said it's essentially 'an asset seizure.' Some like Google's Larry Page have already moved out. Remember 'Life is a question mark. You live it.' And some choose to live it elsewhere away from such taxes.

Virginia's Gamble

In Virginia they're proposing a new tax bracket of 10% on those making over $1 million. Meanwhile neighboring West Virginia and North Carolina are cutting taxes. Elizabeth Bennett Parker a member of the Virginia House of Delegates argues the revenue is needed. But as I’ve learned every action has a reaction. Virginia's gain might be West Virginia's and North Carolina's opportunity. This reminds me of the constant land grabs and alliances in my time. Today it's wealth not land that's at stake.

The Exodus Warning

Experts warn that these tax hikes could cause the wealthy to move to lower tax states. Jared Walczak from the Tax Foundation notes that states like California are becoming less attractive. It's like when the seas become too stormy; wise sailors seek calmer waters. 'Luck decides who will live. Fate decides who will die.' And tax policy it seems decides where the wealthy will reside.