E.J. McMahon of the Manhattan Institute calls it a “sledgehammer” to New York City.
This week, the Tax Foundation released this table. It shows what each state’s top tax rate looks like with the House Bill’s three surtaxes, targeted at high earners, to pay for nationalized health care.
Three states meet the 57 percent tax rate mark: Oregon (57.54%), Hawaii (57.22%), and New York (56.9%). At the very top of the list is New York City with a 58.68% top tax rate.
There is not much improvement for the remaining 47 states; the bottom ten states face a top rate of 47.25 percent.
What is the likely scenario in Manhattan? It’s not just Wall Street’s top earners who will bear the burden (or flee for other professions or places): it is small and/or growing businesses. As the New York Post writes, “The legislation is especially onerous for business owners, in part because it penalizes employers with a payroll bigger than $400,000 some 8 percent of wages if they don’t offer health care.”
Here’s a picture, courtesy of the New York Post: