New York, California, and numerous other states could soon become some of the highest tax places in the world if the Biden Administration gets its way.
The Biden tax plan that Congress is debating this week would raise the top income tax rate to 39.6% from its current 37% today.
And that’s not all…
Biden wants to place a new payroll tax of 15% on earnings over $400,000 (or $200,000 each for a married couple.) This combined payroll and income tax hike would bring the marginal tax rate on an additional hour of work to 54%.
State and city taxes can no longer be deducted from federal returns. As such, high-tax states like New York, California, Hawaii, Minnesota, Oregon, Iowa, Arizona and New Jersey would all see marginal tax rates approaching 70%.
Meanwhile, if California and New York get their way, taxes could go even higher. Both states are discussing ways to shore up their disastrous finances. In California, the General Assembly is considering raising the state income tax to 16.5%. And, in New York, the embattled Governor Andrew Cuomo has proposed a two percentage point hike. This would raise income taxes in New York City to 15.5%.
As economists at the Committee to Unleash Prosperity point out, if New York and California are successful with their tax hikes, they will officially become home to some of the highest tax places in the world.
Hey, who needs Bernie Sanders when President Joe Biden is willing to go so far left and turn us into a socialist state?
To be clear — higher taxes is not a sustainable path forward for America. Instead, we need pro-growth policies that will generate more wealth for the country as a whole, instead of onerous taxation that will discourage prosperity.
The Biden tax hikes, the largest since 1993, should not be approved.