Here in California, we recently voted for a bunch of tax hikes. We did this thinking that it was obvious that the state needed money if we were going to maintain our schools and highways.
We may have been acting from enlightened self-interest but we managed to convince ourselves that this was the right thing to do. But then tax time rolled around. Suddenly we realized (duh) that this was going to cost us some money. We knew this going in, but that's not the same as having to deal with actually forking over the dough.
The result is that, once again, business has seemed to evaporate right before our eyes. People who have to pay more taxes don't have as much money to spend on things like new dining tables or upgraded bathroom vanities. And what seemed to be a small extra burden has left people feeling much more pinched that they might have thought.
Pinched is a relative term. People who earn a working wage might have a whole different interpretation of pinched than those earning a few hundred thousand a year or more. Nevertheless, when one is feeling the pinch, discretionary spending decreases.
Something to think about if your state is considering imposing increased tax burdens on "the wealthy."