There’s no doubt about it: Blue States are doubling down (er up) on their high tax rates. Illinois and New Jersey state legislators are considering millionaire taxes, Washington State has already adopted a 9.9.% tax on millionaires, and just last week Maine raised their tax on 2,500 millionaires from 7.15%, to 9.15%. California and New York are talking about wealth taxes.

We call this the Blue State Pickett’s Charge economic strategy. It is sure to fail, sure to send millionaires packing, and sure to deplete the state’s tax base. These soak-the-rich gestures make no sense now, given that the states’ wealthy residents can no longer take advantage of the federal, state and local tax deduction.

Maine’s now 8th highest income tax will mostly hit small and medium-sized business owners.

Here are the states (all blue) with the highest state/local income taxes:

1. 1. 1. California: 14%
      2. New York: 13.9%
      3. Hawaii: 11%
      4. New Jersey: 10.75%
      5. District of Columbia: 10.75%
      6. Oregon: 9.9%
      7. Minnesota: 9.85%
      8. Maine: 9.15
      9. Massachusetts: 9% (includes a 4% surtax on high earners)
      10. Vermont: 8.75%

All of this only makes red states more attractive.