Are you one of your state’s most productive citizens? Do you already pay hundreds of thousands, or even millions in taxes to state and federal governments each year? Your hard work is appreciated by House Democrats, who are happy to relieve you of even more of your money.
Democrats have released a tax plan aimed at paying for their planned $3.5 trillion spending bonanza, and it takes direct aim at high-income Americans. Here’s a brief of the plan from Robert Frank of CNBC:
- The proposals include a 3% surtax on taxpayers earning more than $5 million a year. They would also raise the top marginal income tax rate to 39.6%.
- The plans would preserve the 3.8% net investment income tax and extend it to certain pass-through companies.
- The result is a top marginal federal income tax rate of 46.4%.
- The House plan is still a proposal and could change. Yet the combined rates for New York City would be among the highest in nearly 40 years.
In California, top earners will pay 59% of their top dollars to state and federal governments (unless Larry Elder wins the recall and is allowed to implement his plans to turn the state around). But in New York, top earners will pay 61.2% of their marginal income in taxes.
Frank explains:
Top earners in New York City could face a combined city, state and federal income tax rate of 61.2%, according to plans being proposed by Democrats in the House of Representatives.
The plans being proposed include a 3% surtax on taxpayers earning more than $5 million a year. The plans also call for raising the top marginal income tax rate to 39.6% from the current 37%. The plans preserve the 3.8% net investment income tax, and extend it to certain pass-through companies.
The result is a top marginal federal income tax rate of 46.4%. The marginal rate is the rate for every dollar above the tax bracket income threshold.
In New York City, the combined top marginal state and city tax rate is 14.8%. So New York City taxpayers who earn more than $5 million a year would face a combined city, state and federal marginal rate of 61.2% under the House plan.
The House plan is still a proposal and could change. Yet the combined rates for New York City would be among the highest in nearly 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 combined rates of 57.4%.
Action Line: You need to spend your retirement life in a state that respects your money, and you. Start finding a better America by looking at my Super States.
