There have been dramatic changes in state tax policy over the past five years and they’ve mostly been positive.

To be more specific, 23 states have cut their top income tax rates compared to five states that have moved in the other direction (documented in two maps at the end of this column).

In a competitive environment (especially when it’s so easy for upper-income people to move), the states raising taxes are conducting a very strange experiment.

As noted in my three-part series (see here, here, and here), it’s almost as if they have a suicide pact. Today’s column will be the fourth installment in the series.

I’m motivated to revisit the issue because of this article for Governing. Jared Brey discusses the states that are marching in the direction of class-warfare policy (copying foolishness in Massachusetts, Maine, Hawaii, and Washington).

Here are some excerpts.

How much do the richest people owe to society? For a growing number of states, the answer is “more.” Massachusetts voters approved a new tax called the Fair Share Amendment in 2022, for instance, levying 4 percent on incomes over a million dollars. …lawmakers in other places are looking at similar measures. Washington, long a state with no income tax, this year adopted a 9.9 percent tax on incomes above $1 million. Maine recently enacted a budget with a 2 percent surcharge on high incomes. Rhode Island lawmakers are considering a similar proposal with a rate of 8.99 percent. …The idea of taxing the rich to pay for public services is as old as time. But backers of the various proposals say it has additional momentum right now… States that do pass higher taxes on high-income people can brace for a fight of one type or another. …Amber Wallin, director of the State Revenue Alliance, says progressive taxation has the wind at its back. …“There will often be pushback, but when you think about the long-term trends, we’re seeing it come to fruition,” Wallin says.

What’s most amazing is that states generally are not facing any revenue shortfalls.

The push for class-warfare tax increases seems overwhelmingly driven by spite and envy. Viva la Venezuela!

P.S. Here are two maps comparing 2020 top state income tax rates and 2026 top state income tax rates.

P.P.S. I expect sensible states to continue lowering tax rates. I’ll simply note, however, that it is impossible to have good long-run tax policy without spending restraint (see here, here, and here). As such, I hope tax-cutting states begin to adopt TABOR-style spending caps.