Tax Rates For New Yorkers Would Top 50% Under Obama
'Significant Difference' Is Seen For High-Income Areas Like the City
By JULIE SATOW, Staff Reporter of the Sun * July 18, 2008
http://www.nysun.com/new-york/tax-rates-for-new-yorkers-would-top-50-under-obama/82191/
New York tax filers reporting more than $375,000 a year in earned income may end up paying nearly 60% of their wages in taxes to the government under a Barack Obama presidency, economists who have analyzed his plan said.
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Senator Obama speaks at the Ronald Reagan Building and International Trade Center July 15, 2008 at Washington, DC.
For full calculations of the figures in this article, open the slideshow and click through.
The Democratic presidential candidate is proposing not only raising the federal income tax, but also adding a Social Security tax for those Americans earning more than $250,000 a year. For New Yorkers, that could mean that if the current Social Security rate is applied, the marginal tax rate, or rate on every extra dollar earned, could rise to 58%.
"This is a very eye-popping number," a resident scholar at the American Enterprise Institute, Alan Viard, said.
Under current law, there is a 12.4% Social Security tax on salaries up to $102,000 a year. While the Social Security tax is split equally between employers and employees, economists widely hold that employees shoulder the entire tax burden because employers simply pass along the cost of the tax in the form of lower wages....
