More than half of households with a net worth of at least $1 million are “very concerned” about taxes. Nearly 57 percent of investors with between $1 million and $5 million ‘strongly agree” or “agree” with that statement, while just over 61 percent of households with $5 million share also that sentiment.
But millionaires in at least seven states will have one less levy to worry about, according to Bloomberg, which said that temporary so-called millionaire taxes imposed during the recession are becoming harder to justify in the wake of a recent Goldman-Sachs report that found state tax revenue on the rebound. “Overall, state tax revenue grew 12 percent in April compared with a year earlier, which may trim $20 billion from estimated state budget shortfalls, according to…Goldman Sachs,” Bloomberg said.
Earlier this year in Minnesota, for example, Gov. Mark Dayton said he would eliminate the temporary surcharge that had been imposed on the wealthiest Minnesotans after a budget forecast showed that the state’s deficit should shrink by more than $1 billion, Minnesota Public Radio reported.
In New York this year, the highest tax rate on incomes exceeding $500,000 will drop from 8.97 percent to 7.85 percent. Maryland’s 6.25 percent tax on incomes over $1 million already expired at the beginning of this year, while California’s top tax rate for millionaires has dropped to 10.3 percent from 10.55 percent, Bloomberg reported.
Not all are happy with the tax rollback. Last year, New Jersey’s Rep. Gov. Chris Christie vetoed the millionaire's tax increase bill just minutes after it was approved by the legislature. According to news reports, Dem. State Senate president Steve Sweeney said to Christie, "I'll be back," to which Christie responded, "I'll be here."
But a survey taken at the time found that nearly three-quarters of New Jersey voters (72 percent) favored restoring the millionaire’s tax.
A Gallup poll released earlier this month found respondents nearly evenly split on the issue, with 47 percent believing that the government should impose heavy taxes on the rich, while 49 percent disagreed, mirroring views of four years ago. The schism between Democrats and Republicans on this subject was more pronounced. The poll found that seven of 10 Democrats believe the government should levy taxes on the rich to redistribute wealth, while an equal proportion of Republicans believe it should not. The slight majority of independents also oppose this policy.