Revival of the Wealth Tax May Prompt Constitutional Challenges

Robert F. Mancuso kicks off 2026 with a new piece featured in Bloomberg Tax, offering an updated outlook on the wealth tax movement in the U.S.

Illustration: Jonathan Hurtarte/Bloomberg Tax

This coming year will reveal whether the revival of the wealth tax remains symbolic or becomes structural. Expect congressional hearings on mark-to-market taxation, renewed state-level proposals, and inevitable constitutional challenges—possibly fast-tracked to the Supreme Court.

The movement may already have begun on Jan. 1, when Zohran Mamdani became New York City’s mayor. Mamdani campaigned on a 2% income tax increase on city residents with an annual income of $1 million or more and advocated for raising the state’s top corporate tax rate from 7.25% to 11.5%, all to help pay for improved city services.

While the wealth tax movement may start in New York City, it won’t end there. Whether enacted or merely debated, 2026 will force deeper reckoning over what the American dream now owes to the state that underwrites it.

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