Blue States Sabotaging Economies by Targeting Millionaires

Leftist policies to tax the rich are driving businesses and residents out of states like Washington, Illinois, and Massachusetts.

Mar. 16, 2026 at 7:18am

Got story updates? Submit your updates here. ›

Across the nation, blue states are committing political and economic suicide by targeting millionaires with high taxes, according to former New York Lt. Governor Betsy McCaughey. She argues that the "tax-the-rich" mania will drive out businesses, jobs, and tax revenue, leaving behind failing economies and shrinking political clout. States like Washington, Illinois, and Massachusetts are pursuing millionaire taxes despite evidence that it will backfire, as seen in Massachusetts' "hollowing out" of its workforce and economy.

Why it matters

This ideologically driven push to punish the wealthy will hurt the least mobile people in these states - wage workers and the poor - by driving out businesses and jobs. It is widening the divide between tax-friendly red states and high-tax blue states, condemning the latter's residents to poverty.

The details

In Seattle, Democrats are slated to pass a 9.9% income tax on millionaires, despite Washington's constitution prohibiting an income tax. This will drive out businesses like Starbucks, which is moving a significant share of its corporate management to Nashville, Tennessee. Illinois Democrats are also pushing for a 3% surcharge on $1 million earners, even though Illinois already has one of the heaviest tax burdens in the nation and is losing population. Massachusetts is struggling with a huge population exodus as residents relocate to other states, causing a demographic decline and brain drain.

  • In April 2020 to July 2025, 182,000 residents fled Massachusetts for other states.
  • This week, a slim Democratic majority in the Washington state legislature is slated to pass the millionaire tax.

The players

Betsy McCaughey

A former Lt. Governor of New York State and Chairman & Founder of the Committee to Reduce Infection Deaths.

Bob Ferguson

The Democratic Governor of Washington state who is vowing to sign the millionaire tax measure into law.

JB Pritzker

The Governor of Illinois who is facing pressure from the Illinois Federation of Teachers to implement a millionaire tax.

Maura Healey

The leftwing Democratic Governor of Massachusetts who opposes lowering the state's income tax.

Jason Doucette

The head of the Connecticut state Tax Equity Caucus who is pushing a bill to increase the top marginal tax rate.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

The takeaway

This case highlights the growing divide between tax-friendly red states and high-tax blue states, as leftist policies to punish the wealthy backfire and hurt the least mobile residents. States should focus on creating economic opportunity through lower taxes, not ideological crusades against the rich.