From Fox Business: Blue states around the U.S. are planning tax hikes on wealthy residents to bring in additional revenue through a variety of proposals, including one state’s so-called “Taylor Swift tax.”
The moves come after the enactment of the One Big Beautiful Bill Act (OBBBA) by President Donald Trump and Republicans in Congress, which permanently extended many of the 2017 tax cuts and included other new tax relief provisions as well as spending cuts to programs such as Medicaid.
Democrats argue these tax hike proposals are needed to help plug gaps in state budgets and offset any lost federal dollars for Medicaid and other programs.
The state of Rhode Island enacted a new tax this summer that will impose a special levy on vacation homes valued at $1 million or more, which has become known as the “Taylor Swift tax” due to the music star owning a home in an affluent part of Westerly, Rhode Island, The Wall Street Journal reported.
The report adds that Montana wants to increase property taxes on second homes or short-term rentals, Maryland has raised income tax rates on residents earning over $500,000 a year, and lawmakers in Connecticut considering legislation that would raise income tax rates on individuals earning $250,000 or more, or twice that amount for couples.
Also, the state of Washington passed a budget this spring that will raise its capital gains tax from 7% to 9%,
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A growing number of blue cities and states across the country, from Washington state to Rhode Island, are looking at ways to wring more revenue from their richest taxpayers https://t.co/c0RsjHNyRI
— The Wall Street Journal (@WSJ) August 14, 2025
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