Tuesday, October 20, 2020

Joe Biden Tax Plan to Create Tax Rate of Approximately 62% for Californians and New Yorkers

High earners in New York and California could face combined federal and state tax rates of 62% under Democratic presidential nominee Joe Biden’s tax plan, reports CNBC.

In California, top earners could face a state and federal tax rate of as much as 62.6% under the Biden plan, according to calculations from Jared Walczak of the Tax Foundation. In New Jersey, the combined rates could be just more than 60%, while in New York state they could reach 58.2%. In New York City, home to most of the state’s high earners, the combined city, state and federal income tax rate would be just over 62%, according to CNBC,

Walczak said if you include the contributions to the tax hikes by employers, which are often passed along to employees, the combined rates would rise even further — to over 65% in California, 62.9% in New Jersey and 64.7% in New York City. They could also jump higher if California and New York raise taxes on high earners, which some legislators have proposed to reduce multibillion-dollar budget gaps.

“These rates would be the highest in about 3½ decades,” said Walzcak, “and imposed on a broader tax base than was in place previously.”

Expect the exodus from high tax cities and states to intensify if Biden is elected.


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