New Yorkers with the highest incomes risk paying 61.2 percent income tax

New Yorkers with the highest incomes risk paying 61.2 percent income tax if Democrat Joe Biden's Democrats enforce their plans. Those in the House of Representatives outlined changes in taxation at the city, state and federal levels, but this is still the final form. The CNBC television server wrote it on Monday. The plans include a 3 percent tax surcharge for people who earn more than five million dollars a year. The Biden people's proposal also envisages raising the maximum tax rate to 39.6 from the current 37 percent, leaving the net investment income tax unchanged at 3.8 percent. This also applies to certain companies that are not otherwise subject to corporate income tax. The result is a maximum federal income tax of 46.4 percent. At this rate, every dollar is taxed on income above a specified tax band. In New York City, the aggregate maximum state and city tax rate is 14.8 percent. Taxpayers with revenues in excess of $ 5 million a year will therefore face a single tax rate at the city, state, and federal levels of 61.2 percent if the House of Representatives passes the Biden Democrats' plan. The plan is still in the design phase and may change, CNBC warns. The uniform tax rates for the city of New York would thus be among the highest in almost 40 years. According to the Democrats, the highest-income people in California would pay a single tax of 59.7 percent, in New Jersey 57.2 percent, and in Hawaii, for example, 57.4 percent. So far, however, there is no indication that Biden's people will abolish or change the current $ 10,000 cap on state and municipal tax deductions. If they did, they would benefit high-income people in high-taxing countries in particular. Some of them had their taxes increased after the 2017 changes because they could no longer apply such tax deductions at the state and municipal level. However, sources familiar with the tax plans claim that Biden's people could still adjust the tax deduction ceiling in future proposals.