This series (click for Part I and Part II) examines the states that are on the wrong side of the major tax divergence that has taken place and is taking place.

And “wrong side” is defined, unsurprisingly, as the states that are pursuing class warfare even though there is a large and growing body of evidence that high tax rates backfire.

Why don’t soak-the-rich policies work? Because the geese with the golden eggs simply fly away to zero-income-tax states such as Florida, Texas, Nevada, and Tennessee.

And this means these taxes are not a good way to generate revenue (something I mentioned when writing about the proposed California wealth tax two days ago).

But these taxes are a “good” way of expressing envy, hate, and resentment, and that seems to be the main motive for many leftist state lawmakers. So the push for bad policy continues.

Here’s a useful summary of what’s happened – and what may happen – from a CNBC report by Kate Dore.

More Democratic states are embracing higher taxes on the wealthy amid increased fiscal pressures. But these policies could cause future revenue issues, experts say. …In 2022, Massachusetts voters approved a 4% tax on annual income above $1 million, and Washington in late March enacted a millionaires’ tax, which applies a 9.9% levy to residents who make more than $1 million per year. Maine in April also added a surcharge of 2% on yearly earnings above $1 million. In recent years, there have also been income tax hikes on higher earners in the District of Columbia and states such as Maryland and New York… State tax hikes on the wealthy have also been floated in places like California, Rhode Island, Virginia and others.

A Stateline story from Kevin Hardy covers many of the same developments, but notes that some leftist politicians recognize the dangers of big cash grabs.

Here are some excerpts.

The idea is gaining traction as lawmakers in at least a dozen states, including Illinois, Minnesota, Rhode Island and Virginia, have proposed new taxes for the wealthiest taxpayers. In California, advocates this week announced they gathered enough signatures for a ballot initiative that would impose a one-time tax on billionaires. But these proposals often stir yearslong battles. The taxes can take different forms — taxing annual incomes above a certain threshold or taxing capital assets, including high-value stocks and real estate. …Proponents say these moves can help balance state tax structures that are tilted against lower earners. …But opponents argue that these measures levy new taxes on business owners, dissuading local investment and encouraging rich residents to move away — especially risky during a time when many other states are slashing taxes. …some progressives are wary of going too far: California Democratic Gov. Gavin Newsom is opposing the ballot initiative that would impose a one-time 5% tax on those whose net worth exceeds $1 billion. Hochul, who pushed for the new tax on second homes in New York City, has warned that more tax increases on the millionaires and billionaires could hollow out a crucial portion of the state’s tax base.

I’ll close today’s column with a prediction and a partial mea culpa.

My prediction is that most of these proposed class-warfare tax increases won’t be enacted.

Why? Because plenty of Democratic state lawmakers privately agree with Govs. Newsom and Hochul. They know that higher taxes will cause lots of out-migration, which means very little new revenue.

However, my mea culpa is that some of these suicidal tax increases have been enacted, and presumably a few more will be enacted in the future.

This is contrary to my 2016 hypothesis that common sense would prevail and leftist politicians would understand the danger of becoming a “Goldfish Government.”

The moral of the story is that I didn’t fully appreciate the short-sighted venality of the political class.

P.S. I hope the people fleeing high-tax states don’t bring bad voting habits to low-tax states.