Monday, July 21, 2008
I previously blogged that Obama's Proposed Tax Hikes Would Hit Blue States Hard. The New York Sun runs the numbers for New York in Tax Rates For New Yorkers Would Top 50% Under Obama, by Julie Satow:
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.
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. ...
Some observers said that raising taxes at a time when the economy is teetering on a recession could exacerbate the economic woes. "If the economy remains soft through next year — and it seems unlikely that it will be robust — it would be a very bad time to raise taxes of any sort, but particularly to raise them in this way," a professor who teaches federal tax law at Yale Law School, Michael Graetz, said. ...
For the full calculations of these figures, see the slideshow accompanying this article.
(Hat Tip: InstaPundit.)