Some State Senate Democrats Want to Tax the Rich

The NY Times reports that a group of Democratic State Senators are introducing a bill to tax the wealthy, to help shore up state revenue: "New York households that earn more than $250,000 in taxable income a year would see their tax rate rise to 8.25 percent from 6.85 percent — the highest rate currently paid. Those who earn more than $500,000 would pay 8.97 percent; and those who earn more than $1 million would pay 10.3 percent." Assembly Speaker Sheldon Silver supports taxing the upper income brackets, while Governor Paterson does not (though he did concede, last December, that might be a possibility). However, State Senate Majority Leader Malcolm Smith said of the bill, "The problem is foreclosures. The problem is a $15 billion deficit. The problem is trying to figure out how do we create jobs in this economy. So in that regard, I’m not sure if taxes is the way you do that.”

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By Jen Chung in News on February 10, 2009 4:15 PM

Comments [rss]

Tax Brackets 2011

I'm not finished read this yet, but it's so fabulous 'n I'll back again when I was finished my job :D

glennQNYC

Can we really call a family with a $250,000/year household income rich?

cucarachita

For goodness sakes, the rich have already figured out how NOT to pay as much taxes as regular people. That's how they get rich.

They should stop whining and pay up, like the rest of us. 30% of their income, basta. Just like us. Enough with all the tax breaks for them.

Trilby16

Look, they have to go where the money is. They can't take any more from me! I'm all tapped out! The really rich don't want to leave NYC. Also, they would have to sell their properties first, so they are stuck here, too.

FrankMartin

The appeal on NY is strong and I agree the money must come from somewhere. But in 1 year or 2 or 10, when the economy improves does the tax reduce. No, instead it results in more spending on BS projects, pork and earmarks (or hell maybe every retired city and state employee will get disability).

And then when the economy turns south again they raise taxes again. Just seems like a lazy solution.

Guest

I agree the money must come from somewhere

Where then?

Guest

Taxing things like food, clothing, haircuts, health care, movies, and downloaded music sure ain't gonna create any jobs, either. Nor would cutting spending by $15 billion, were that even possible. So NY to Malcolm Smith: get a clue from Sheldon silver, of all people. Reinstating a progressive state income tax is about the least awful place to begin making up that $15 billion shortfall.

FrankMartin

Not for nothing but if you make a million, and live in NYC you are looking at an effective tax rate of 50%. What make me worry about this proposal is that government tends to waste so much.

Combine that with people moving to cheaper states and you haven't solved any problems.

just seems like a cheap and old solution.