A growing number of U.S. states are accelerating efforts to raise taxes on high-income individuals, signalling a structural shift in how wealth is taxed at the state level. From millionaire surtaxes to proposals for new income tax regimes, the message to high earners is increasingly clear: the cost of success in high-tax jurisdictions is rising.
This trend is prompting global entrepreneurs, investors, and high-net-worth individuals to reassess where they choose to live, invest, and operate.
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The New Reality in the United States
States such as Washington, New York, Massachusetts, Colorado, and Michigan are actively pursuing higher taxes on personal incomes exceeding $1 million. In Washington State, proposals include a nearly 10% tax on income above the $1 million threshold, marking a dramatic departure from its historically tax-light structure.
When combined with federal income taxes, these measures can push effective tax rates to levels that significantly erode net income, particularly for founders, investors, and senior executives.
What was once positioned as a temporary fiscal fix is increasingly becoming a long-term policy direction.
High Taxes, Mobile Wealth
In a globalised economy, wealth and talent are mobile. As tax burdens increase, high-net-worth individuals are not merely absorbing higher costs many are restructuring residency and operations to jurisdictions that offer stability, predictability, and efficiency.
This is not theoretical. Over recent years, several prominent global business leaders have shifted their personal or family offices away from high-tax environments.
Notably, Lakshmi Mittal, Chairman of ArcelorMittal and one of the world’s most prominent industrialists, has reportedly relocated significant aspects of his personal and business presence to the UAE. His move reflects a broader pattern among global billionaires who are prioritising jurisdictions that support long-term wealth preservation and international business operations.
The UAE Advantage: Zero Personal Income Tax
Against the backdrop of rising taxes in the US and Europe, the United Arab Emirates continues to offer one of the most attractive fiscal environments globally:
- No personal income tax
- No capital gains tax for individuals
- No wealth or inheritance tax
- A transparent, predictable regulatory framework
Even with the introduction of UAE Corporate Tax, the system remains internationally competitive, with a 9% rate applicable only on taxable business profits above a prescribed threshold, alongside exemptions and incentives, particularly for qualifying free-zone entities.
For high earners, the difference in post-tax income compared to high-tax US states can be substantial.
More Than Tax: Why the UAE Works for Living and Business
Tax efficiency alone does not explain the UAE’s growing appeal. The country offers a comprehensive ecosystem for global citizens and businesses:
- World-class infrastructure and connectivity
- A safe, politically stable environment
- Strong legal and regulatory systems
- Access to international markets across the Middle East, Africa, Europe, and Asia
- High standards of healthcare, education, and lifestyle
For entrepreneurs and executives, the UAE provides a platform to build and scale globally without excessive personal tax exposure.
Strategic Relocation, Done Right
Relocating to the UAE is not about tax evasion. It is about lawful tax planning, proper residency structuring, and aligning personal and business interests with a jurisdiction that rewards growth and investment.
As more US states adopt aggressive tax policies targeting high earners, individuals with international flexibility are increasingly viewing relocation as a strategic business decision, not merely a lifestyle choice.
A Clear Global Signal
The push by US states to tax millionaires reflects a broader global debate on wealth redistribution and fiscal sustainability. However, in a competitive global economy, jurisdictions that offer clarity, efficiency, and stability will continue to attract capital and talent.
The UAE’s tax-free personal income regime, combined with its pro-business environment, positions it as a preferred destination for the world’s entrepreneurs, investors, and global citizens a trend underscored by the choices of some of the world’s most successful business leaders
