With New York Covid expatriates considering returning to the office, Albany lawmakers should welcome a home. Instead, they have their eye on big new tax hikes that would give the state’s temporary refugees to Florida – or wherever – one more reason to stay away forever. A budget deal appeared nearby on Sunday, but not within our deadline. Here are some of the National Assembly’s proposals:
• Income taxes: Millionaires are subject to graduated tax rates of up to 11.85%. This is much higher than today’s highest marginal levy of 8.82% on joint applicants earning $ 2.2 million. Under the Assembly’s plan, this existing bracket would be taxed at 9.85%. A profit of more than $ 5 million would be achieved at 10.85%. The new top rate limit of 11.85% would be $ 25 million.
Since New York City has its own personal income tax of 3.88%, the combined tax rate would be 15.73%. That’s a bigger bite than even California’s infamous top tax of 13.3%, and don’t forget Uncle Sam has a 37% stake. Pretty soon, life in a low-tax country looks inviting. Remember, New York Income Tax is already progressive: the top 5% of applicants contribute to it more than 60% the journal reports on the income.
• Capital Gains Taxes: Put a 1% surcharge on investment gains made by individuals earning $ 1 million per year. That percentage may sound small, but New York is already taxing capital gains as regular income. So start with the congregation’s new peak ceiling rate of 15.73% for a Manhattanite. Add the 1% surcharge. The highest federal interest rate on cap gains is 23.8%. The grand total would be 40.53%, and that’s before Joe Biden’s campaign promise Tax capital gains as regular income at the federal level. What a thank you for investing in job creation in the city.
• Estate Taxes: Increase the maximum rate from 16% today to 20% for taxable estates over $ 10.1 million. Again, keep in mind that this is stacked on top of the federal estate tax of 40%, meaning the government’s marginal income would hit 60%. Is it any wonder that wealthy people spend a lot of money hiring real estate attorneys?