Millionaire’s taxes are having a moment: Here’s why that’s good for all of us

You've probably heard the phrase “tax the rich” thrown around. But lately, something real is happening. States across the country—Maine, Washington, Massachusetts, and even right here in Hawaiʻi—are starting to ask their wealthiest residents to pay a little more.

It’s not about punishment. It’s about common sense.

Our local businesses need an educated workforce; our keiki need school meals; our families need healthcare and a safety net—and that money has to come from somewhere. For far too long, we’ve asked working people to carry the bulk of that load alone.

What’s a Millionaire’s Tax?

It’s simple: an extra tax on income over $1 million. Not on the first million—just the part above it.

Washington state just passed one at 9.9 percent on income over that threshold. This comes on the heels of adoption of the state’s first tax on capital gains beginning in 2022. 

What makes this truly remarkable is that Washington state doesn’t even have a state income tax normally. That’s how much things are changing. They’re using the revenue for education, universal school meals, and lowering other taxes.

Maine also just approved a 2 percent surcharge on income over $1 million for single filers ($1.5 million for couples). It’ll raise about $100 million a year—enough to make community college free for Maine residents, raise minimum teacher salaries, and invest in SNAP and healthcare. That last part matters even more because Congress just cut those same safety net programs while giving big tax breaks to the wealthiest 1 percent.

What’s Happening at Home

Here in Hawaiʻi, our lawmakers are paying attention. You might remember the big tax cuts the Legislature passed in 2024 under Act 46. Those cuts, if left alone, would have cost our state more than $7 billion over five years. That’s money we need for schools, housing, infrastructure and public health.

So this year, the House and Senate passed SB3125. It’s a compromise that stops the tax cuts for the top four income brackets and adds a 2 percent surcharge on combined income over $1 million (or over $500,000 for single filers). 

It’s not exactly the same as what Maine or Washington did, but it’s a real shift. Our leaders are recognizing that when we ask the wealthiest to pay their fair share, we can build a fairer tax code and fund the services our families depend on—especially now, with federal cuts looming.

The Bigger Picture

Advocates and community leaders around the country have been pushing for fair taxes on wealth for years. In 2022, Massachusetts voters passed a millionaire’s tax by ballot measure to fund transportation and public education. Back in 2012, California voters did something similar for K-12 schools and community colleges.

The idea that those who’ve benefited most from our land, our labor, and our local economy should contribute a little more is no longer seen as fringe. Increasingly it’s being seen as smart policy.

Here’s the reality: Over the past three decades, extreme wealth has piled up at the very top. According to Oxfam analysis: 

• Between 1989 and 2022, the wealth increase for the top 1 percent grew 101 times larger than for the median household—and 987 times larger than for households in the bottom 20 percent. 

• In 2025 alone, the top 10 billionaires in the U.S. got $698 billion richer. Meanwhile, the bottom 20 percent saw barely any change at all.

Some folks call this a second Gilded Age—like that stretch in the early 1900s when a handful of wealthy families lived like royalty while everyone else struggled. The parallels are hard to ignore. We’ve got the world’s richest man, a billionaire president, and tax cuts that keep benefiting the top 1 percent while programs like SNAP and Medicaid get slashed.

A fairer tax code isn’t about punishing success. It’s about making sure all of us can thrive—not just a wealthy few.

When we ask those with the most to pay their fair share, we can fully fund our schools, take care of our families, and build a future where everyone has a chance. That’s good for working families, and it’s good for local businesses that need healthy communities to succeed.

The trend is clear. More states are choosing this path. Now it’s up to us to keep pushing—so that here at home, we can fund our future together.