New York

A veritable superbloom of tax and budget policies occurred over these last few weeks, including both flowers worth admiring and weeds worth fighting back.

Second home taxes make a lot of sense for communities struggling with housing costs for full-time residents. They can raise real revenues too, which can be used to support further affordable housing development.

From surcharges on the income of high-earners to higher taxes on second homes, here are recent steps states have taken to tax the rich.

According to the Institute on Taxation and Economic Policy, “Millionaires are unlikely to move because of taxes. Instead, like most other people, millionaires primarily choose where to live based on community ties, schools, and jobs, and are not likely to uproot their lives based on a marginal tax difference.” Read more.

As many legislative sessions end, lawmakers are revealing their priorities.

The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

State legislative sessions are wrapping up, and final tax and budget packages are making their way to governors’ desks.

This week, troubling revenue projections are making headlines, with many lawmakers scrambling to determine how the tax changes at the federal level, plus price hikes driven by national policy decisions, will impact their states.