Whitey Ford
09-14-2021, 12:03 AM
WEALTH
Top earning New Yorkers could face 61.2% combined tax rate under House plan, Californians may face 59% rate
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.
https://www.cnbc.com/2021/09/13/top-earning-new-yorkers-could-face-61point2percent-combined-tax-rate-under-house-plan-californians-may-face-59percent-rate.html
Top earning New Yorkers could face 61.2% combined tax rate under House plan, Californians may face 59% rate
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.
https://www.cnbc.com/2021/09/13/top-earning-new-yorkers-could-face-61point2percent-combined-tax-rate-under-house-plan-californians-may-face-59percent-rate.html