During the campaign, she backed giving localities the option to hold a referendum on whether to raise the sales tax for schools. New income tax bracketsThere are at least three Democratic-sponsored measures that would create new (and higher) tax brackets for higher-income earners. Republicans are warning that under Democrats, state income taxes could rise from 5.75% to 13.8%, which would be the highest in the country. The catch with that is the tax isn’t a state tax, it’s a local tax. For other tax bills, the impact might be a lot more complicated, especially where those digital services are concerned.