Opinion

Blue states’ latest sneaky cash grab targets your biggest payday yet

Five states now layer extra taxes on top of existing income tax, targeting business sales and stock gains

By Ted Jenkin Fox News

Published May 6, 2026 7:00am EDT

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Americans flee blue states for lower taxes

Rastegar Capital CEO Ari Rastegar joins 'Fox News Live' to discuss Americans leaving blue states for lower taxes and the impact of rising rates on the housing market and supply-side issues, including helium and fertilizer.

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There’s a new playbook in blue state taxation, and it’s not being explained clearly to the people paying the bill.

It’s called the surtax.

And if you think it’s just another tax bracket, you’re already missing the point.

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What is a surtax?

A surtax is a tax layered on top of an existing income tax, not a replacement for it.

In plain English, here’s how it works: You pay your normal state income tax, and then once your income crosses a certain threshold, the state adds an extra percentage on top of that same income.

Surtaxes aren’t just about taxing the rich. They’re about engineering revenue from high-value moments.

It’s the difference between climbing a ladder and having someone add another rung above you just when you think you’ve reached the top and hit success. But why should you be penalized for being successful? It’s anti-capitalist.

Why blue states use surtaxes

States........

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