Does this also hit people with large amounts of accumulated wealth, or is it mostly aimed at the middle class?
I ask because, in California, when people cash out after an IPO, they often find that they pay over 50% marginal tax. This happens even though their average earnings over the time period where they earned the stock were nowhere near the top tax bracket.
On the other hand, ultra wealthy people involved in the same IPO have all sorts of mechanisms at their disposal that make it easy to avoid the big tax hit. (Most of the strategies involve taking on positive expectation risks with $100K’s of downside, which you should not do unless you’re a multi-millionaire)
Anyway, the people in the former group are sometimes called HENRYs (high earner not rich yet), and I get the impression that one group pays a much higher percentage of their earnings in tax than any other group. When these millionaire taxes are proposed, they usually target Henry’s, but not people that are wealthier than that.