In Anti-Status Quo Election Voters Seemed Very Reluctant to Make Major Changes to State Income Tax Systems or Widely Embrace Punitive Taxation
A number of tax initiatives were on ballots Tuesday that would have significantly impacted economic growth in the states, both for better and worse. In contrast with sentiments expressed about candidates, voters seemed very reluctant to make major changes to tax laws. They were also hesitant to embrace punitive taxes such as California’s Proposition 40. Among the most important measures were:
- California Proposition 40
Anti-growth, failed
This initiative would have imposed a one-time 5% levy on the worldwide wealth of the state’s billionaires. It would have given the United States its first wealth tax and was the highest profile fiscal measure on any ballot this year.
- North Carolina 3.5% Tax Rate Cap
Pro-growth, approved
This measure lowered the income tax rate cap from 7% to 3.5%.
- Washington Initiative 645
Pro-growth, failed
This initiative would have repealed the new 9.9% tax on household income above $1 million.
- Colorado Amendment 87
Anti-growth, Too close to call (As of noon November 5, 2026)
Initiative 87 would replace the flat 4.4% rate with a progressive six-bracket system.
- Massachusetts Question 5
Anti-growth, Too close to call (As of noon November 5, 2026)
Massachusetts places a cap on how much revenue the state can collect each year. Any excess must be returned to taxpayers. Question 5 would base the cap on the previous year’s actual collections plus wage growth and count the millionaires’ surtax toward it, making refunds more likely.
Candidates in Tuesday’s elections were all over the map when it came to taxes. Some wanted higher taxes while others wanted lower levies. Members of each faction won while others lost. When asked to directly choose which tax policies they favored, voters were much less ambiguous: they tended to favor centrist, status quo policies and were reluctant to widely embrace punitive taxation.
