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Leaders say 9.9% tax on millionaires is core concept; mechanics, timing still under development
Summary
Asked about a proposed 9.9% tax on income above $1,000,000, leaders said they have agreement on mechanics but are awaiting draft language and stakeholder review; they said revenue would likely be used to reduce regressive taxes and support working families, while some leaders stressed cuts and transfers are the immediate tool for the 2025–27 budget.
Lawmakers at a leadership media availability described the broad contours of a proposed progressive income tax that would impose a 9.9% rate on adjusted gross income above $1,000,000 while excluding capital gains, but they said concrete drafting and stakeholder review remain to come.
Speaker 9 asked whether there is consensus among leaders on the bill’s basic elements. Speaker 7 replied that he and Representative Fitzgibbon "have agreement on the mechanics of the tax," but said a drafting process and stakeholdering remain and that the text would be circulated before finalization. On capital gains, Speaker 7 said the proposal would not include capital gains income.
Speaker 7 described a revenue estimate of roughly $3.5–4.0 billion annually if the tax passes and said a substantial portion of revenue would be returned to households through credits or reductions in regressive taxes such as property taxes; he cited the working families tax credit as an existing vehicle that might be expanded.
On immediate budget choices for the 2025–27 biennium, Speaker 1 said, "Any general tax increase is not realistic for the current biennium," adding that the near-term plan is to balance using reductions and transfers. Speaker 7 acknowledged smaller, faster revenue options exist (for example, cigarette-tax increases) but said they would not alone resolve the budget challenge.
Leaders emphasized that final revenue and distribution decisions will depend on drafts, committee referrals and stakeholder input in the weeks ahead.
