States crack down on tax break for wealthy investors

Lake Oswego in Oregon. Bradleyhebdon | Istock Unreleased | A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. A wave of states deciding to take aim at a tax incentive for investors and startup founders could sway some high-net-worth residents to relocate, lawyers to the wealthy told Inside Wealth. The One Big Beautiful Bill Act turbocharged the tax breaks on qualified small business stock, better known as QSBS . However, some states, including Maine and Oregon, have targeted the tax incentive in response to federal funding cuts. "Tax policy has consequences, both good and bad, and I think that the states need to figure out what makes the most sense for them," said David Blum, partner and chair of Akerman's national tax practice group. "Someone looking for a substantial exit could have multiple homes already." Blum noted that several billionaires have made high-profile departures from California as a state billionaire tax proposal gains steam. Google co-founder Sergey Brin, who has bought mansions in Nevada and Florida, is funding two ballot initiatives that take aim at the wealth tax measure. The QSBS exemption, introduced during the Clinton administration, was designed to encourage investing and creating small companies. …