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The New Civil War: Blue States Soak The Rich; Red States Sue To Cut Taxes Share to Facebook Getty Images The Trump tax reform conspicuously targeted high-tax Democratic states. Now that they’re in control, some Democrats have made undoing the damage a priority. New York Governor Andrew Cuomo has always been more reluctant than other Empire State Democrats to soak the rich just last summer he warned that raising taxes on the state’s billionaires would mean they’d “just move next door.” But last week he agreed to a budget deal that boosts state income tax rates on millionaires and would leave New York City’s richest paying the highest combined state and local income tax rate in the nation 14.8% on income above $25 million. New York hadn’t held that dubious title since 2012, when California voters hit millionaires with a 13.3% rate. 

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