The plan to balance the budget continues by increasing taxes on the wealthy. States think this will save their state or city and can continue to give out more free services or money, and the rich will pay for it.
Governor Hochul thinks the rich should be happy to pay for social programs and come back to NY to cut her a check. Maybe if she hadn’t insisted in 2022, the very people paying the taxes should all leave because they are not New Yorkers; they would still be there. Everyone cheered, but they are not cheering now. Why? Their taxes are going up; it is the only way she can continue with all her social programs. Someone must pay for it, and it will be the voters who put her in office.
I am not sure why she thinks the rich should pay for her generous social welfare programs. But then again, “Tax the rich and affordability” is the slogan for the 2026 midterm elections. The midterms will be all about affordability, but at what costs? These politicians will get elected, but how will they pay for their programs? Tax the rich!
However, taxing the rich will become a thing of the past, as states increasing taxes on the rich are losing revenue not bringing in more. Even if you tax them to leave the state or city, it’s a one-time fee; you will lose more money from the lack of yearly taxes collected by them.
Illinois tried and failed to tax the wealthy in 2020; they are trying to do so again in 2026. They have a $2.2 billion budget deficit, so they want to tax billionaires a 4.95% “wealth tax.” Because of trying to tax the rich, they lost over 3,100 residents making over $200,000 in 2021 and 2022. More people are moving out every year to a lower tax state. At some point, they are done paying for everyone else.
Illinois talks about affordability, but instead of making things more affordable, it increased spending from $40 billion to $55 billion. So, to raise revenue they are not getting from the rich, they are increasing fees on online betting, tobacco, and nicotine, telecommunications, and much more. This will just be the beginning, as they need to find a way to pay off $2.2 billion and cover an additional $15 billion in spending. Instead of introducing another billionaire tax, maybe they should cut the budget.
Massachusetts imposed a 4%-million-dollar tax and lost $4.2 billion after residents left in 2023. They claim they are bringing in more money, but it comes from a smaller tax base. That 4% will most likely have to increase to 5% or 6% and be lowered to $500,000 a year until everyone must pay something. Maybe just 1%, but It’s coming.
It’s amazing how states want to tax the rich and then are surprised when they leave. It’s common sense, if you can afford to leave and pay less taxes somewhere else after the state bleeds you dry, you will leave. States and cities are going broke, and they need someone to pay for their spending.
For those of you who think it doesn’t affect me, they are already increasing your taxes. Look at your bills and you will see fees you have to pay to federal, state and local governments. And let’s not forget the surcharges. It’s called a tax and everyone is paying for it, and they keep increasing them without telling you. They just let you know the new cost of the service.
States and cities need money from everyone because they do not want to cut social programs but add more people to them. This costs money, and at some point, you will be considered rich too.
National Debt
I read an article today about how the US is insolvent, and no one is talking about it. It was reported last week that as of September 2025, the US has $6.06 trillion in total assets and $47.78 trillion in total liabilities. The worst part is that it does not include Social Security and Medicare. That is currently $88.7 trillion short.
When you add the two numbers together, $47.78 trillion + $88.7 trillion, you get over $136 trillion in debt. 5 times more than the US GDP, according to this article.
What was very surprising about this article were the comments; most are blaming Trump. Yes, he has helped increase the deficit, but this has been going on for 30 years, and no one does anything about it. Most politicians ignore it and continue business as usual, spending more money.
It is both parties who have created this mess, and if you keep voting them in and allowing them to continue to add to the deficit they will come for you too. It’s time to make elections about cutting the fat and being fiscally responsible. Do you run your household like these politicians who run the United States? If you overspend and don’t pay your bills, eventually you will be kicked out of your house or apartment, lose your car and any other assets, and be left with nothing. Do you think any politicians will help you?
Someday, people will have to pay the price of both the Republicans and Democrats for putting us in this situation, and when it explodes, they will try to cover their butts by saying, “I had no clue, and I was just trying to help people.” The fact is, they all know, but they don’t care and are hiding it from you. It will be the future generations who will have to clean up this mess.
Conclusion
States and cities are running out of money, and it doesn’t make a difference that they want to tax the rich. They will always need more money and billionaires become millionaires and so on until everyone is taxed at some percentage.
Until politicians start to balance the budget and cut services, they will never have enough money and will always run a deficit. At what point are you going to say enough? Probably not until it hits your wallet and you must pay. Unfortunately, it will be too late because the taxes will already be in place and you will have to pay them too.