New York moves to cut, keep millionaire tax
Like Maryland and other states New York has been levying a tax surcharge on high-income folks. New York's main income-tax bracket used to be 6.85 percent. But for the past three years couples' income of more than $300,000 was taxed at 7.85 percent. And couples' incomes of more than $500,000 was taxed at 8.97 percent.
Some in New York wanted to keep the millionaire tax. Gov. Andrew Cuomo disagreed, saying it would drive capital out of the state. Now he has mainly caved, agreeing with legislative leaders to reduce the rates a little but maintain the surcharge on higher incomes. They also agreed to lower rates for couples making less than $150,000. From the NYT:
Under the proposal announced Tuesday, for married couples filing jointly, income from $40,000 to $150,000 would be taxed at 6.45 pecent; from $150,000 to $300,000 at 6.65 percent; from $300,000 to $2 million at 6.85 percent, and over $2 million at 8.82 percent.
Changing the tax rates and brackets would allow the state to replace some, but not all, of the revenue to be lost when the so-called millionaires’ tax expires on Dec. 31.
Maryland's millionaire tax expired last year, but there is talk of reviving it.