Lawmakers in California, Illinois, New York and Washington state have proposed new taxes on wealth, and higher income taxes for the rich are on the table in Connecticut, Maryland and Massachusetts. Residents of these seven blue states are already among the highest-taxed. The states are also in financial trouble. California and New York impose income tax rates that can exceed 13%, but their budget deficits are mounting. Lawmakers in Sacramento and Albany think the answer is to soak the rich...