Larger federal income tax bills may be coming for higher-income Americans, if the President has his way.
Individuals making $200,000 and up and couples making $250,000 or more a year will see their taxes increase in 2011, unless Congress votes to keep the George W. Bush-era cuts in place.
This would raise the top two income tax rates from 33%to 36% and from 35% to 39.6%. The government would reportedly take in $365 billion over the next decade from those increases.
In NYS you may get hit again as the Governor and leaders of the legislature have reached a deal to temporarily raise taxes on New York's highest earners in order to close the state's growing budget deficit.
Although the proposed tax has been called a "millionaires' tax," it would affect those with incomes starting at $300,000, who would be taxed at a rate of 7.85%. The highest bracket would carry a tax rate of 8.97% -- the same as New Jersey's current highest rate. Currently, New York's highest tax rate, 6.85%, kicks in for couples and joint filers making more than $40,000.
Could more NYS residents be heading for the exits?????
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