Tax the rich? Liberals renew push for state wealth taxes

Supporters of taxes on the very rich contend that people are emerging from the COVID-19 pandemic with a bigger appetite for what they’re calling “tax justice.”

Bills announced Thursday in California, New York, Illinois, Hawaiʻi, Maryland, Minnesota, Washington and Connecticut vary in their approaches to hiking taxes, but all revolve around the idea that the richest Americans need to pay more.

Hawaiʻi state Rep. Jeanné Kapela, a Democrat, said a proposal there to increase the state’s capital gains tax is more about economic equity than raising money.

“If you look at our tax code now, it’s really the definition of economic inequality,” Kapela said.

The lowest-paid workers in many states often see a far bigger percentage of their income go to pay taxes every year than the very rich, particularly in states that don’t have a graduated income tax.