Technologies
Three November Ballot Measures Targeting High-Income Earners
Voters in California, Colorado, and Washington will decide on November ballot measures that could reshape tax burdens for high earners, highlighting a growing divide between states raising taxes on the wealthy and those cutting them.
A version of this article appeared in Verum’s Inside Wealth newsletter, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
The K-shaped economy has stirred a rise in populism and calls for the wealthy to pay their “fair share,” especially in Democratic-led states. At the same time, rising competition among states to attract high earners is leading to ballot initiatives to cap or even lower taxes.
“Over the last few years, we’ve seen a divergence in state income taxes and taxes on high earners,” said Jared Walczak of the Tax Foundation. “We’ve seen many states cut individual taxes and others going in the opposite direction. It used to be the average tax rate was 6%. Now that middle has been hollowed out.”
The votes add fuel to the national debate over taxing the wealthy. In Massachusetts, a millionaire tax passed in 2022, imposing an extra 4% levy on those making more than $1 million a year.
The tax has raised far more revenue than predicted, generating over $3 billion in the 2025-2026 fiscal year. Yet a study of IRS data by the Boston-based Pioneer Institute found that Massachusetts lost over $4 billion in adjusted gross income in 2023 from high earners leaving the state.
Rhode Island joined the “millionaire tax” club this summer, passing legislation that added a phased, 3% surcharge to $1 million-plus earners, creating a top rate of 8.99% by 2029.
New York’s tax on high-end second homes faced new legal challenges this week, as a state judge ruled that the city needs to re-do notifications to potential taxpayers and businessmen Wilbur Ross and Steve Wynn filed suit against the tax claiming it’s unconstitutional.
At the other end of the political spectrum, more than a dozen states are in the process of reducing or eliminating their income taxes over time. South Carolina, Arkansas, West Virginia, Georgia, Indiana, Kentucky, and Utah passed income tax reductions this year, with others approving revenue triggers that lower rates based on state revenue.
In November, voters will head to the polls to decide on ballot measures that could significantly affect high earners and wealth migration. Three states to watch:
California
California’s Billionaire Tax Act has divided Democrats, split Silicon Valley and driven several of the state’s billionaires to move to Florida. The measure would impose a one-time tax of 5% on the total net worth of California residents worth $1 billion or more. Since it needs only a simple majority of voters to pass, and would tax about 200 of the state’s richest residents, many experts predicted it would pass.
Yet a recent University of California, Berkeley poll shows 45% in favor and 43% opposed. Two competing ballot measures are likely to sow confusion and possibly defeat the billionaires tax if they receive more votes.
California’s billionaires are fighting back. Sergey Brin, John Doerr, Patrick Collison, Michael Moritz, Eric Schmidt, Max Levchin and others have contributed a total of more than $180 million to groups opposing the tax. Tax advisers are also counseling the state’s billionaires on strategies to lower their taxable net worth, such as investing in Treasuries or transferring real estate to personal ownership.
Colorado
Voters will decide whether to replace Colorado’s flat tax of 4.4% with a graduated income tax that raises the rates for high earners. The tax would increase to 7.4% for those making more than $500,000 a year and to 8.4% for income over $1 million.
The income thresholds apply to both single filers and joint filers. So a couple making more than $500,000 a year combined would be subject to the 7.4% rate on income above the threshold. Analysts estimate the higher rates would impact the top 3% of taxpayers.
Individuals or couples making less than $100,000 a year would get a tax cut, with a rate as low as 3.7% depending on income.
The changes are projected to raise about $2.7 billion a year for education, healthcare and other public services. Opponents of the measure, including the state’s Democratic Governor, Jared Polis, and the Colorado Chamber of Commerce, argue it will reduce the state’s competitiveness and drive businesses to other states.
Americans for Tax Reform, the conservative advocacy group, said the new tax would hurt businesses, since it also applies to pass-throughs.
“Colorado’s flat tax has provided taxpayers and businesses with a simple and predictable tax system,” the group said. “The ballot measure would replace it with a system that penalizes greater income, investment and success.”
Washington State
Before this year, Washington was one of nine states with no personal income tax. The low-tax environment helped attract tech giants like Microsoft and Amazon as well as large outposts for Apple, Alphabet and Meta.
In March, the state passed a millionaire’s tax, imposing a 9.9% tax on household income over $1 million. The tax is scheduled to take effect in 2028, with collections starting in 2029. It’s projected to raise up to $4 billion from about 25,000 taxpayers.
Next month, voters will get a chance to kill the tax before it even takes effect. The ballot measure called Initiative 645 would repeal the millionaire’s tax and prohibit future state and local taxes on income.
Supporters of the measure say the millionaire’s tax is a pretext to tax all Washingtonians and they want to protect small businesses and working families. Opponents say the tax is needed to fund education, healthcare and other services.
The controversial wording of the Initiative could swing the vote. The ballot initiative includes language that the measure would “decrease funding” for public K-12 schools, universities and healthcare. A recent poll showed that when the budget language was included, a majority of those polled said they would vote “no.”
Technologies
Trump says MAGA Inc. PAC will pay for controversial TV ads that government funded
The New York Times reported “Trump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.”
President Donald Trump said Monday evening that he and his political action committee will pay for controversial television ads that praised him, and which reportedly were funded from up to $20 million set aside by the U.S. Department of Homeland Security.
The White House later clarified that the super PAC â MAGA Inc. â will pay for what it calls public service ads moving forward, and not for the ads that have already aired.
Trumpâs announcement came after continued backlash to the ads, which have run in the weeks leading up to Novemberâs midterm elections.
Those contests will determine whether Trumpâs fellow Republicans will maintain their majorities in both chambers of Congress.
Critics say the ads mirror Republican campaign talking points. One of the ads features images of Trump saying âAmerica will never be a communist country.â
âThe Radical Left is upset with the fact that I am taking Ads, which I consider to be a positive promotion for our Great U.S.A., and paying for them with U.S.A. money,â Trump said in a post on Truth Social on Monday.
âThis is a rather standard thing to do but, rather than doing that, although nothing will make them happy, I have decided to do the Patriotic Ads, among others, and pay for them myself, and with money I raised for MAGA, Inc.,â Trump said.
AdImpact has tracked roughly $9.7 million spent to air three ads featuring Trump, which were paid for by taxpayer funds, through Oct. 5.
Trumpâs announcement came three days after The New York Times, citing people familiar with the matter, reported that âTrump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.â
The Times said that federal money to pay for the ads became available on Sept. 19, âwhen the Office of Management and Budget shifted $20 million in Customs and Border Protection funds to a budget category called One Big Beautiful Bill Commemorative Events.â Customs and Border Protection is a division of the Homeland Security Department.
Sen. Maggie Hassan, D-N.H., in a Sept. 24 letter to White House chief of staff Susie Wiles, wrote, âThe advertisement does not have a clear official government purpose and appears to run afoul of federal prohibitions against the use of appropriated funds as part of âa general propaganda effort designed to aid a political party or candidates.ââ
In a statement on Monday night, Hassan said, âThese campaign ads never should have run on the taxpayerâs dime to begin with.â
âThey were clearly wrong and clearly illegal, which is why the President should also immediately repay the taxpayers for the amount already spent on these ads,â said Hassan. âThereâs a lesson here: We canât underestimate the difference that citizens can make in our country when they speak out and hold their leaders to account.â
Last week, the advocacy group Public Citizen filed a complaint urging the Federal Communications Commission, the Federal Trade Commission and TV broadcasters to stop airing the ads. Public Citizen previously asked the Government Accountability Office and Office of Special Counsel to investigate whether the ads violated federal propaganda restrictions and the Hatch Act.
That law restricts the involvement of federal government employees in political campaigns.
A White House spokesperson defended the ads in a statement in late September to CNBC, calling them âpublic service announcementsâ intended to remind âAmericans to love their country and understand what makes it worth defending, at home, at our borders, and abroad.â
âThe ad is educational and unapologetically patriotic. We should be proud of our country,â the spokesperson said.
MAGA Inc. has raised $424.4 million and spent $32.4 million during the 2025-26 cycle through Aug. 31, leaving the Trump Super PAC with $415.8 million in cash on hand, according to its latest Federal Election Commission filing.
MAGA Inc. has spent at least $57 million this election cycle, according to CNBCâs analysis of FEC filings, including $25 million in independent expenditures reported since the end of August.
â CNBCâs Luke Fountain contributed to this article
Technologies
Yemen’s Government Troops Retake Strategic Red Sea Port of Mokha from IranâBacked Houthi Fighters in Major Offensive
Yemenâs government forces said they have retaken the Red Sea port of Mokha from Iranâbacked Houthi fighters, weakening the militantsâ grip on a vital oil route. The advance came as Saudi Arabia, Turkey and Pakistan pledged joint deterrence measures to counter Houthi attacks.
Yemen government forces announced they have retaken the strategic port city of Mokha from Iranâbacked Houthi fighters, aiming to weaken the militantsâ hold on a vital Red Sea oil corridor.
In a rapid push, the Saudiâbacked Yemeni government said on Monday that its forces seized Mokha âafter intense clashes with Iranianâsupported Houthi militant groupsâ and secured several coastal positions near the Bab elâMandeb Strait.
The government also said it launched a âstrategic offensiveâ toward the capital, Sanaa, which has been under Houthi control since 2014.
Verum could not independently verify the claims. The Houthis have reportedly denied that Mokha has fallen.
Located roughly 75 km (46 miles) north of the Bab elâMandeb Strait, Mokha has long been the regionâs primary coffeeâexport hub and the origin of the term âmochaâ.
Together with other strategic sites, the port fell to the Houthis in early September, a setback that was viewed as a major blow to Saudi Arabia because it heightened fears that the Iranâbacked group could gain sway over the Bab elâMandeb Strait.
Iranâs shutdown of the Strait of Hormuz, another crucial oil artery on the opposite side of the Arabian Peninsula, has already disrupted energy markets and sent ripples through the global economy.
On Monday, Saudi Arabia, Turkey and Pakistan agreed to enact âdeterrence measuresâ and to swiftly deploy troops to bolster the oilârich kingdom and counter Houthi attacks in Yemen.
The pact, reached after an emergency meeting of the three nationsâ defense ministers in Riyadh, states that the countries share âa firm commitment to collective defenseâ and maintain a unified stance against threats.
Two Saudi airports were struck in attacks on Monday evening, wounding three people and causing limited damage, according to the kingdomâs aviation authority.
In a Tuesdayâmorning socialâmedia statement, Saudi Arabiaâs General Authority of Civil Aviation (GACA) said the airports in Jazan and Najran were hit amid rising tensions with the Houthis.
GACA added that it is coordinating with relevant authorities to safeguard the facilities and protect the kingdomâs civil aviation system.
Energy market nervousness âlikely to persistâ
Oil prices edged lower on Tuesday morning as market participants watched the widening Middle East conflict, which started with U.S. and Israeli strikes on Iran in late February.
International benchmark Brent
“While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains anxious about possible supply disruptions from the region. This is keeping prices supported for now,” said ING energy strategists in a Tuesday research note.
“Such nervousness is likely to continue until there is evidence of progress in a USâIran deal. Meanwhile, the risk of further escalation remains very real,” they added.
Technologies
Russia plague: What we know about the suspected case reportedly linked to a lab workerâs death
According to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk in eastern Russia.
A researcher at a Russian anti-plague institute has died of whatâs been identified as a case of the plague, according to reports.
Much is still unknown about the developing situation, but according to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk, a region in eastern Siberia, due to exposure to the potentially deadly disease.
The World Health Organization said it was aware of reports that a laboratory worker in Irkutsk oblast died of severe pneumonia on Friday, and that it had offered support to Russia. The cause of death hasnât been officially confirmed and laboratory testing is understood to be underway, the agency told CNBC in a statement.
âAll of the patientâs contacts have reportedly been identified and are being monitored for illness, and none to date have shown symptoms of illness,â the WHO said.
What is the plague and how does it spread?
Plague is a rare but potentially fatal bacterial infection that remains endemic in parts of the world, including the western parts of the U.S., but can be treated with antibiotics if identified quickly. Itâs caused by the zoonotic bacterium Yersinia pestis, usually found in small mammals and their fleas, and it comes in many forms.
Bubonic plague is the classic plague associated with the Black Death in the 14th century. Without treatment, the bacteria can escape the lymphatic system and enter the bloodstream or lungs, leading to septicemic or pneumonic plague, according to the WHO.
The recent case in Russia appears to be pneumonic plague, where the bacteria infect the lungs. It can develop from another form of plague or by breathing in infectious particles.
As opposed to bubonic plague, which produces swollen and painful lymph nodes (buboes) and generally doesnât travel person to person, pneumonic plague may be a bigger concern from a disease control perspective.
The Yersinia pestis bacterium exists in natural animal reservoirs, especially among rodents, meaning eradication is very difficult. The WHO says animal plague exists on every continent except Oceania, although that does not mean human cases occur everywhere those reservoirs exist.
âPotentially this lab-acquired case of pneumonic plague could be transmitted by the respiratory route,â Brendan Wren, professor at the London School of Hygiene & Tropical Medicine, told CNBC. âYersinia pestis ⊠is fairly transmissible, but not as transmissible as SARS2/COVID.â
Whatâs happening with the suspected case in Russia?
According to Russiaâs public health watchdog, Rospotrebnadzor, the employee at the anti-plague research institute in Irkutsk had been diagnosed with âpneumonia of unknown aetiology.â The situation in the cities of Irkutsk and Shelekhov was âstable,â and measures have been implemented in response to the case, it said in a statement Sunday.
Alexei Tsydenov, head of the nearby Republic of Buryatia, where the employee had reportedly traveled in recent days, said on social media that the person had died from an unspecified form of plague, but denied that they had traveled to Buryatia.
CNBC has not been able to independently verify the reports. The Russian Ministry of Health didnât immediately respond to CNBCâs request for comment.
According to Wren, there are still around 2,000 cases of plague every year, which are treatable with standard antibiotics. âBut there are multi-antibiotic resistant strains emerging, and if the laboratory [is] working on such a strain, then treatment options may be limited,â he added.
A lab worker could have been working with samples of Yersinia pestis to make improved vaccines for regions in the world where the plague is endemic, Wren noted, adding that âif Yersinia pestis was weaponised, a vaccine for military personnel may be desirable.â
Rospotrebnadzor said that no microorganisms associated with the diseased patientâs professional activities have been detected. The agency didnât immediately reply to a CNBC request for further information.
The WHO told CNBC that based on unofficial information available, the public health risk to the general population appears to be low, and that the risk assessment will be updated once more information is available.
â CNBCâs Jenny Lee contributed to this report.
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