President Obama's tax hikes on wealthy Americans could, if enacted,
end up hitting traditionally Democratic "blue" states harder than
Republican-leaning "red" states, according to two reports released this
week.
Connecticut, New York, New Jersey, Massachusetts and California — all blue states — would suffer the most, according to a Tax Foundation report.
The reason, the study notes, is that these states have higher shares of wealthy taxpayers than the rest of the country. In each of them, those making more than $200,000 — the taxpayers targeted by Obama's hikes — account for more than 56% of all federal income taxes paid in those states. The U.S. average, the report notes, is 50%.
"As a result, a higher proportion of new tax dollars will come from these states," noted the Tax Foundation's Ed Gerrish, "likely impacting local economies."
Under Obama's plan, the two top tax rates would return to Clinton-era levels and beyond starting next year, with the top rate at 39.6%. The new ObamaCare Medicare surtax for high-income families would raise the top rate to 40.9%.
Smaller Economy, Fewer Jobs
In addition, taxes would climb on dividends and capital gains, which would top out at nearly 45% and 25%, respectively.
Read more: http://news.investors.com/article/618552/201207181148/obama-taxes-could-hit-blue-states-hardest.htm
Connecticut, New York, New Jersey, Massachusetts and California — all blue states — would suffer the most, according to a Tax Foundation report.
The reason, the study notes, is that these states have higher shares of wealthy taxpayers than the rest of the country. In each of them, those making more than $200,000 — the taxpayers targeted by Obama's hikes — account for more than 56% of all federal income taxes paid in those states. The U.S. average, the report notes, is 50%.
"As a result, a higher proportion of new tax dollars will come from these states," noted the Tax Foundation's Ed Gerrish, "likely impacting local economies."
Under Obama's plan, the two top tax rates would return to Clinton-era levels and beyond starting next year, with the top rate at 39.6%. The new ObamaCare Medicare surtax for high-income families would raise the top rate to 40.9%.
Smaller Economy, Fewer Jobs
In addition, taxes would climb on dividends and capital gains, which would top out at nearly 45% and 25%, respectively.
Read more: http://news.investors.com/article/618552/201207181148/obama-taxes-could-hit-blue-states-hardest.htm
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