You know states are taking sides in a war over taxes. Many red states are racing to lower taxes as far as possible, while blue states seem set in a competition to raise them the highest. Well, Rhode Island has implemented a major new tax on millionaires, placing it in the top tier of progressive-taxation states. The Wall Street Journal’s Editors write:

The Governor [Dan McKee] on Friday signed a $15.2 billion budget that raises the state’s top tax rate on income above $1 million to 8.99% from 5.99%. While Republican-governed states are competing to lower taxes, Democratic-run states are racing to the tax top. Hawaii, Washington and Maine have raised taxes on high earners this year.

The only mention of the new tax in the governor’s press release on the new budget blamed it on President Trump, of course. Of course, he wants the wealthiest to just “pay a little more.” The governor’s office wrote:

By asking the wealthiest Rhode Islanders to pay a little more through a phased-in millionaire’s tax, this budget also protects Rhode Islanders from reckless cuts by the Trump Administration, a promise Governor McKee made in his State of the State address.

Before the new tax was passed, the Rhode Island Public Expenditure Council explained why the tax wouldn’t fix Rhode Island’s problems. Michael Dibiase, President and CEO of RIPEC, breaks down why it won’t work in the video below.

Action Line: Are you and your business being served by your politicians? Or are you only a piggy bank from which they make withdrawals in order to fund their radical agendas? When you want to take your money and business somewhere it is rewarded, not punished, begin your search with Your Survival Guy’s 2026 Super States rankings. And click here to subscribe to my free monthly Survive & Thrive letter.

Originally posted on Your Survival Guy.