Tax Bracket Fever

New York is considering tax hikes on its highest earners. Two new brackets are being proposed: Those earning over $300,000 would be taxed at 7.85 percent, and copying New Jersey’s 2004 “Millionaire’s tax”, a 8.97 percent rate would apply to those earning over $500,000.

In spite of the forthcoming stimulus funds, New York is struggling to balance its books, which calls into question the governor and legislature’s promise that the new brackets are a “temporary” measure to be phased out in three years.

There is a sliver lining: an earlier plan called for as many as nine brackets.