February 3, 2010
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?????
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).