Politics

NYC’s wealthiest residents could pay nearly 61.2% in taxes under new plan proposed by House Democrats

CNBC has just produced the first analysis of what the House Democrats new tax proposal would do to the overall tax rate of the wealthiest class of taxpayers.

Top earners in NYC would face a combined city, state and federal income tax rate of 61.2%. For the top marginal federal income tax rate – which is the rate that taxpayers pay on every dollar of earned income above the threshold – would be 46.6%. In NYC, the combined top marginal state and city tax rate is 14.8%. So, city taxpayers who earn more than $5M a year would face a combined city, state and federal marginal rate of 61.2% if the House plan becomes law.

These would be among the highest tax rates seen in the last 40 years. Top-earning Californians would face a combined marginal rate of 59.7%, while those in New Jersey would face a combined rate of 57.2%. Hawaii could face a combined rate of up to 57.4%.

Meanwhile, there are no signs that the House will roll back any of the less popular tax hikes from the Trump plan, such as the SALT (sales and local tax) deduction cap. However, some sources close to CNBC said it’s possible the House might seek to scrap the SALT deduction cap at a later time.

ARTICLE: PAUL MURDOCH

MANAGING EDITOR: CARSON CHOATE

PHOTO CREDITS: POLITICO

The following two tabs change content below.
Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

Leave a Reply