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Thursday, June 14, 2012

Ten Highest Tax States on $1 Million Income

Forbes:  The Highest State and Local Income Taxes on a $1 Million Income:

We asked Wolter Kluwer’s CCH division to calculate the tax bill for a married couple with $1 million in salary, two children and $110,000 in itemized deductions, living in the largest city in each state. Here are the 10 highest bills.

  1. New York (New York):  $103,280
  2. Hawaii (Honolulu):  $96,557
  3. Oregon (Portland):  $91,609
  4. California (Los Angeles):  $87,849
  5. Maryland (Baltimore):  $83,188
  6. D.C. (Washington):  $82,902
  7. Maine (Portland):  $78,883
  8. Vermont (Burlington):  $77,561
  9. Minnesota (Minneapolis):  $74,874
  10. Delaware (Wilmington):  $74,310

Interestingly, all ten states are blue states that voted for Barack Obama in 2008, John Kerry in 2004, and Al Gore in 2000.

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Comments

Nothing interesting about it- it is necessary for Democratic voting states to maintain higher state income tax rates, in order to fund their state services because Southern and Flyover states whose population consistently complains about the oppressive Federal Government receive more in federal benefits than they pay in federal taxes, while Northeast and West Coast states end up footing the bill. I can't complain too much though- they gave us Eli Manning and Andy Pettitte.

Posted by: Sujan Vasavada | Jun 14, 2012 3:08:00 PM

Why do rich people vote against their interests?

It must be false conciousness, they've been duped by the social politics of the Democratic party.

Posted by: Yo Gabba Gabba | Jun 14, 2012 3:27:26 PM

Or, alternately, they understand the Democratic party's positions and agree with them.

Posted by: asd | Jun 15, 2012 6:06:28 AM

Do you account for the fact that if this theoretical family owns a house in California, their property tax will be virtually nil compared to other states thanks to prop 13, particularly if they bought it several years ago?

Posted by: nm | Jun 15, 2012 8:17:01 AM

You should take into account property taxes as well, as the commenter above talking about California noted. In New York, for example, if they live in NYC they'll be paying a big slug of city income tax (which is why the NY rate is the highest). But they'd also be paying among the lowest property taxes in the country for a similarly situated couple, assuming they own their condo/townhouse/co-op. So their overall taxes would actually probably be higher if they lived in a fancy (and Republican) suburb in New Jersey like New Providence or Franklin Lakes, where property taxes are through the roof, than if they lived in Manhattan.

Posted by: Ben | Jun 15, 2012 8:46:10 AM