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IPFS News Link • TAXES: State

Top Tax Rate In NYC Would Be 61.2%, 59.7% In California Under House Dems' New Tax Plan

•, by Tyler Durden

Despite it not being included in the outline released by House Ways and Means earlier today, New York Rep. Tom Suozzi has just released a statement claiming that the leadership have committed to removing the cap for SALT deductions.

To be sure, it's not exactly clear what this 'meaningful change' will be.

Update (1100ET): CNBC has just produced the first analysis of what the Dems' new tax proposal would do to the overall tax rate of the wealthiest class of taxpayers.

Top earners in NYC would face a combined city, state and federal income tax rate of 61.2%. For the top marginal federal income tax rate - which is the rate that taxpayers pay on every dollar of earned income above the threshold - would be 46.6%

In NYC, the combined top marginal state and city tax rate is 14.8%. So, city taxpayers who earn more than $5MM a year would face a combined city, state and federal marginal rate of 61.2% if the House plan becomes law. These would be among the highest tax rates seen in the last 40 years.

Things aren't much better on the west coast. Top-earning Californians would face a combined marginal rate of 59.7%, while those in New Jersey would face a combined rate of 57.2%. Hawaii could face a combined rate of up to 57.4%. Meanwhile, there are no signs that the House will roll back any of the less popular tax hikes from the Trump plan, the SALT deduction cap, which has been a target of Democratic lawmakers since it was passed.

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