On February 20, 2026, Minnesota legislators unveiled a new bill aimed at increasing taxes on wealthy individuals in the state. The proposal, known as the Wealthy Taxation Act, is part of a broader effort to address income inequality and generate additional revenue for important public services.Under the proposed legislation, individuals with incomes exceeding $1 million annually would see a marginal tax rate increase from 9.85% to 12%. Additionally, the bill calls for a new tax bracket to be created for individuals earning over $5 million per year, with a proposed tax rate of 15%. The increased revenue generated from these higher tax rates would be used to fund education, healthcare, infrastructure, and other essential services.Supporters of the Wealthy Taxation Act argue that it is necessary to ensure that the wealthiest individuals in Minnesota pay their fair share in taxes. They point to data showing that income inequality in the state has been steadily increasing in recent years, with the top 1% of earners capturing a disproportionate share of economic gains.Opponents of the bill, however, argue that such tax increases could drive wealthy individuals out of the state, leading to a loss of tax revenue and economic activity. They also caution that higher taxes on the wealthy could stifle job creation and business investment in Minnesota.The Wealthy Taxation Act is expected to face fierce opposition from Republicans in the state legislature, who have historically been opposed to raising taxes on the wealthy. However, Democratic lawmakers, who hold a majority in both chambers, are confident that the bill will ultimately pass and be signed into law by Governor Rebecca Thompson.As the debate over the Wealthy Taxation Act heats up in the coming weeks, all eyes will be on Minnesota to see how the state's legislators ultimately decide to address income inequality and taxation of the wealthiest individuals.