This tax has two significant issues: First, it is an income tax in spite of what its promoters say. It is a tax on income, not allowed by our state constitution.
Second, it will severely hamper innovation and entrepreneurship. The latter challenge involves the need for risky capital investment into technology and health-related research that converts to commercialization in order for entrepreneurs to monetize innovation.
With a proposed near-doubling of federal capital gains taxes in addition to this new state tax, capital gains could go from 20% to 46.6% of gained income. That changes an investor’s calculus for risk/reward dramatically. Investing in startups is risky, already. Now all the risk will remain but the net reward is greatly reduced if both of these come to pass.
In turn, the respective governments have no risk but are rewarded with nearly half of the success. These are job killers as well as innovation killers. Goodbye, innovators, it was good to have worked with you.